Repay Student Loans » consolidation interest rate, http://www.repay-student-loans.com Student Loan Consolidation & Student Loan Repayment Fri, 22 Jan 2010 20:48:27 +0000 http://wordpress.org/?v=2.8.6 en hourly 1 FFEL Consolidation Loan Weighted Average Interest Rate http://www.repay-student-loans.com/2009/04/ffel-consolidation-loan-weighted-average-interest-rate/ http://www.repay-student-loans.com/2009/04/ffel-consolidation-loan-weighted-average-interest-rate/#comments Wed, 22 Apr 2009 18:42:11 +0000 admin http://www.repay-student-loans.com/?p=71 Consolidation loans have fixed interest rates that are based on the weighted average of the interest rates on the loans being consolidated. A lender can provide a new consolidation loan borrower with the lowest statutory weighted average interest rate for loans by using the lower of the weighted average of the interest rates on the loans being consolidated as of July 1 or the date the lender received the borrower’s consolidation loan application. The lender should apply a consistent method of determining when an application is received.

Most federal education loans are eligible for consolidation, including subsidized and unsubsidized Direct and FFEL Stafford Loans, SLS, Federal Perkins Loans, Federal Nursing Loans, and Health Education Assistance Loans. PLUS Loan borrowers (parent and graduate/professional degree students) can also consolidate their loans. Private education loans are not eligible for consolidation.

To obtain a complete list of the federal student loans that can be consolidated.

  • contact the Direct Loan Origination Center’s Consolidation Department if you’re applying for a Direct Consolidation Loan. You can reach them by calling 1-800-557-7392. TTY users may call 1 -800-557-7395. Or visit loanconsolidation.ed.gov.
  • contact a participating FFEL lender if you’re applying for a FFEL Consolidation Loan. If you do not know who your FFEL lender is, please call 1-800-433-3243 for assistance.

Source: U.S. Department of Education

]]> http://www.repay-student-loans.com/2009/04/ffel-consolidation-loan-weighted-average-interest-rate/feed/ 0 FFEL and Direct Consolidation Loans Interest Rate http://www.repay-student-loans.com/2009/04/ffel-and-direct-consolidation-loans-interest-rate/ http://www.repay-student-loans.com/2009/04/ffel-and-direct-consolidation-loans-interest-rate/#comments Wed, 22 Apr 2009 18:35:44 +0000 admin http://www.repay-student-loans.com/?p=65 The interest rate for FFEL and Direct Consolidation Loans is set according to a formula established by federal statute. The fixed rate is based on the weighted average of the interest rates on the loans at the time you consolidate, rounded up to the nearest one-eighth of a percent. The interest rate does not exceed 8.25 percent. The consolidation rate is fixed for the life of the loan, which protects you from future increases in variable rate loans but prevents you from benefiting from future decreases in variable rates.

Borrowers with Stafford Loans issued on or after July 1, 1995, can reduce the consolidation rate by up to half a percentage point or more by consolidating before the end of the grace period.

The interest rate you would receive, however, depends on which federal student loans are being consolidated. For example, your rate would be higher if you consolidated a 5 percent Federal Perkins Loan along with a 6.62 percent Direct or FFEL Stafford Loan.

For the new interest rates in effect from July 1, 2008 through June 30, 2009 for variable rate Direct Subsidized Consolidation Loans, Direct Unsubsidized Consolidation Loans, Direct PLUS Consolidation Loans, Direct Subsidized Loans, Direct Unsubsidized Loans, and Direct PLUS Loans click here.

Source: U.S. Department of Education

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