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
Saturday, February 28, 2009
Wednesday, February 25, 2009
Federal Student Loan Consolidation FAQ
Federal school Loan Consolidation is a great tool that allows borrowers to merge all of their federal loans into one new loan.
What are the benefits of federal consolidation loans?
* Reduces your monthly payment up to 53%
* Simplified finances - you make only one payment each month
* Provides budget friendly repayment options
* Improves your credit rating
* Saves you money today when you need it most
Student loan consolidation allows borrowers (parents or students) to lock in today's low rates and to combine several federal student loans into one loan, simplifying repayment. Because repayment can be spread over a longer time period, your monthly payment amount will be lower.
What about none-student loan debt, can that be consolidated?
For any other debt you may have, including credit cards and personal loan debt, we offer a free debt consultation service. You can reduce your debt up to 50% and become debt free in as little as 12-48 months. Find out more about debt consultation.
Read more about Federal Student Loan Consolidation FAQ in this link
What are the benefits of federal consolidation loans?
* Reduces your monthly payment up to 53%
* Simplified finances - you make only one payment each month
* Provides budget friendly repayment options
* Improves your credit rating
* Saves you money today when you need it most
Student loan consolidation allows borrowers (parents or students) to lock in today's low rates and to combine several federal student loans into one loan, simplifying repayment. Because repayment can be spread over a longer time period, your monthly payment amount will be lower.
What about none-student loan debt, can that be consolidated?
For any other debt you may have, including credit cards and personal loan debt, we offer a free debt consultation service. You can reduce your debt up to 50% and become debt free in as little as 12-48 months. Find out more about debt consultation.
Read more about Federal Student Loan Consolidation FAQ in this link
Sunday, February 22, 2009
Student Loan Consolidation Benefits
How big is your monthly payment?
Let's face it, life after graduation can get very expensive. With all the living expenses tied into post grad life, including housing costs, car payments, and relocation, why worry about a huge school loan payment? Student loan consolidation can reduce your monthly payment, and help you manage your budget.
Take advantage of these benefits:
* Reduce your monthly payment by as much as 53%
* No penalties for early repayment
* Improve your credit score
* Simplify your monthly bill-paying paperwork with one payment a month
* No credit check, no co-signers needed, and no fees
* Consolidation loan interest is Federal Income Tax Deductible
Read more about Student Loan Consolidation Benefits here
Let's face it, life after graduation can get very expensive. With all the living expenses tied into post grad life, including housing costs, car payments, and relocation, why worry about a huge school loan payment? Student loan consolidation can reduce your monthly payment, and help you manage your budget.
Take advantage of these benefits:
* Reduce your monthly payment by as much as 53%
* No penalties for early repayment
* Improve your credit score
* Simplify your monthly bill-paying paperwork with one payment a month
* No credit check, no co-signers needed, and no fees
* Consolidation loan interest is Federal Income Tax Deductible
Read more about Student Loan Consolidation Benefits here
Thursday, February 19, 2009
How Student Loan Consolidation Works - Step 4
Step 4: Application Processing
Upon receiving your signed application, your loan counselor will check the application for errors. We also check to make sure it complies with all federal guidelines set forth for federal loan consolidation. This ensures that your application is completed quickly and accurately.
After your application is submitted for processing, the loan retrieval" begins. We contact your lenders for the exact amount you owe; this information is sent to us on a loan verification certificate, or LvC. This process can take up to 60 days depending on the response time from your lender(s). Once we have valid LvC's from your lender(s), we will send them a check for the balance of your student loans.
Once the check is sent to your lender(s), your loans have officially been consolidated. You will receive a new statement from us detailing when your first payment is due, and when each payment is due thereafter. Your previous lenders can take a week or two to close out your accounts, so do not be alarmed if you get a statement from us, and a statement from your old lender. This is normal.
Read more about How Student Loan Consolidation Works here
Upon receiving your signed application, your loan counselor will check the application for errors. We also check to make sure it complies with all federal guidelines set forth for federal loan consolidation. This ensures that your application is completed quickly and accurately.
After your application is submitted for processing, the loan retrieval" begins. We contact your lenders for the exact amount you owe; this information is sent to us on a loan verification certificate, or LvC. This process can take up to 60 days depending on the response time from your lender(s). Once we have valid LvC's from your lender(s), we will send them a check for the balance of your student loans.
Once the check is sent to your lender(s), your loans have officially been consolidated. You will receive a new statement from us detailing when your first payment is due, and when each payment is due thereafter. Your previous lenders can take a week or two to close out your accounts, so do not be alarmed if you get a statement from us, and a statement from your old lender. This is normal.
Read more about How Student Loan Consolidation Works here
Monday, February 16, 2009
Step 2: Locate Your Student Loans & Step 3: Sign and Mail
Step 2: Locate Your Student Loans
As a result of recent changes at the Department of Education, you'll need to provide your student loan information with your consolidation application. There are several ways that you can locate your student loans and our loan counselors will gladly walk you through each process.
Step 3: Sign and Mail
Once you have reviewed the promissory note, and understand the terms, you will sign and return it to us. Either by eSignature online, or by sending the paper application back in our pre-paid envelope.
Read more about How Student Loan Consolidation Works here
As a result of recent changes at the Department of Education, you'll need to provide your student loan information with your consolidation application. There are several ways that you can locate your student loans and our loan counselors will gladly walk you through each process.
Step 3: Sign and Mail
Once you have reviewed the promissory note, and understand the terms, you will sign and return it to us. Either by eSignature online, or by sending the paper application back in our pre-paid envelope.
Read more about How Student Loan Consolidation Works here
Thursday, February 12, 2009
How Student Loan Consolidation Works - Step 1
We are here to make the student loan consolidation process easy by providing information and support via the web and phone. The following step-by-step guide will help you understand how consolidation works and how it will benefit you for years to come.
Step 1: Apply for Consolidation
The first step in consolidating your student loans is applying for a consolidation loan using our free, no-obligation application form. When you apply, you'll have the choice of receiving an application and information packet via eSignature or postal mail. Your packet will contain a consolidation application, as well as information about your discounts, and details on how your interest rate is computed.
Read more about How Student Loan Consolidation Works here
Step 1: Apply for Consolidation
The first step in consolidating your student loans is applying for a consolidation loan using our free, no-obligation application form. When you apply, you'll have the choice of receiving an application and information packet via eSignature or postal mail. Your packet will contain a consolidation application, as well as information about your discounts, and details on how your interest rate is computed.
Read more about How Student Loan Consolidation Works here
Monday, February 9, 2009
Private Student Loan Consolidation Rates
Private student loan consolidation interest rates are variable, based on either the LIBOR (London Interbank Offered Rate) or the Prime rate, plus a margin for borrower and/or co-signer credit.
Origination fees can range between 1% and 5% depending upon your individual credit or the credit of a co-signer. Any fees that associated with the loan are capitalized (added to the loan) typically at the time repayment begins, which increases the amount borrowed but avoids any out-of-pocket expenses at loan closing.
Read more about Private Student Loan Consolidation Rates here
Origination fees can range between 1% and 5% depending upon your individual credit or the credit of a co-signer. Any fees that associated with the loan are capitalized (added to the loan) typically at the time repayment begins, which increases the amount borrowed but avoids any out-of-pocket expenses at loan closing.
Read more about Private Student Loan Consolidation Rates here
Tuesday, February 3, 2009
Federal Consolidation Interest Rate
Federal Consolidation interest rates are based on the weighted average of student loan interest rates. Federal Stafford loans disbursed between July 1, 2006 and June 30, 2008 have an interest rate of 6.8%*. Stafford loans disbursed after July 1, 2008 have a rate of 6.0%.
However, Federal student loans disbursed before July 1, 2006 will remain variable interest rate loans unless consolidated. These loans will re-adjust every July 1 based on the results of the 91-day Treasury Bill. The rates listed below go into effect on July 1, 2008 for variable rate loans:
3.60% - Stafford loans in grace (down from 6.62%)
4.21% - Stafford loans in repayment (down from 7.22%)
5.01% - Parent PLUS loans (down from 8.02%)
Read more about Federal Consolidation Interest Rate here
However, Federal student loans disbursed before July 1, 2006 will remain variable interest rate loans unless consolidated. These loans will re-adjust every July 1 based on the results of the 91-day Treasury Bill. The rates listed below go into effect on July 1, 2008 for variable rate loans:
3.60% - Stafford loans in grace (down from 6.62%)
4.21% - Stafford loans in repayment (down from 7.22%)
5.01% - Parent PLUS loans (down from 8.02%)
Read more about Federal Consolidation Interest Rate here
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