Federal Student Loan Consolidation Interest Rates
If reducing your monthly payment obligation on your student loans is a big goal, then learning more about student loan consolidation interest rates is absolutely crucial. Your payment could be up to 20% more or less each month depending on what your interest rate clocks in at.
Federal Student Loan Consolidation Rates
The interest rates for federal student loan consolidations are based on the weighted average of student loan interest rates. View the chart below to see where your loan falls in the spectrum.
Stafford Loan Interest Rates
Note: Graduate Stafford Loans (both subsidized and unsubsidized) have a fixed interest rate of 6.8% through 2013.
| Academic Year | Subsidized Rates | Unsubsidized/Graduate Rates |
|---|---|---|
| 2010-11 | 4.50% | 6.80% |
| 2011-12 | 3.40% | 6.80% |
| 2012-13 | 6.80% | 6.80% |
| Current Stafford Loan interest rates in effect from 07/01/2012 to 06/30/2013 | ||
Federal student loans will have different rates depending on type and disbursement dates. For example, rates for Stafford loan disbursed before July 1, 2006 will remain variable until consolidated.
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Currently, the interest rates for Federal loans disbursed before July 1, 2006 are at an all time low. Rates on loans made in the last few years are fixed. Combining these rates in consolidation will lock in one fixed rate and guarantee you know how much you will pay over the life of your loan.
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If you still have Federal loans at a variable interest rate now is the time to consolidate. When you consolidate Federal loans the interest rate is the weighted average of all your loans rounded up to the nearest 1/8 percent. This would result in final consolidation interest rate that is fixed for the remainder of your loan.
* Interest rates on Federal Stafford Subsidized and Unsubsidized Loans are determined by the Department of Education.
