The rate will be a fixed rate equal to a weighted average of the interest rates on your existing loans rounded up to the nearest one-eighth of one percent.
Federal Consolidation interest rates are based on the weighted average of student loan interest rates. Federal student loans disbursed on or after July 1, 2006 have an interest rate of 6.8%. Federal student loans disbursed before July 1, 2006 will remain variable interest rate loans. These loans will re-adjust every July 1 based on the results of the 91-day Treasury Bill. Currently, interest rates for these variable loans are:
* Stafford Loans in grace: 6.62%
* Stafford Loans in repayment: 7.22%
* Stafford Loans in repayment prior to 7/1/98: 8.02%
* PLUS Loans: 8.02%
* Perkins Loans: 5%
* HEAL Loans: 4.125%
* Previous consolidations: existing consolidation rate
* Click here for updated information about consolidation loan interest rates.
Take a look at our Loan Calculator to help you figure out your new rate and monthly payment.
Please note that we cannot guarantee any interest rate due to the time it takes to process an application. We can only provide rough estimates; you should not rely on these estimates for financial planning! Why? Because consolidation takes between 30 - 60 days, and in that time period, you may be making payments, or your loan status may change. Because your interest rate is determined not only on the type of loan you have, but also on how much you owe, we can make no guarantee except to say that your interest rates will never exceed federally specified, published rates.
Read more about the interest rates here
