05.14.09 | What is the highest my consolidated interest rate can go?
The cap or ceiling on your consolidated loan varies between federal and private.
Federal: If you have a federally consolidated loan the rate will never exceed 8.25%. The vast majority of students fall well beneath this 8.25% threshold however. Your consolidated interest rate is a fixed rate based on the weighted average of the interest rates on all the loans you consolidate, rounded up to the nearest one-eighth of 1 percent. The average rate these days is around 6-6.8%.
Private: Private loan consolidations vary from lender to lender, but generally don’t have a cap in order to protect themselves from the fluctuating market. Ask your consolidating lender for more details.
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Filed under: Consolidation, Consolidation Savings
Hi.
Most of student must have a guidance from their parents because they have more experience. Or else the student will trap to unmanage debt after their graduation.
May 14th, 2009 | #
Private student loan consolidation may be a better option than federal consolidation, but you must shop around for the best deal in order to make it work. If you can find a lender who can offer 5% or less, you should definitely consider consolidating with them.
May 17th, 2009 | #
college student loan consolidation worked for me when I completed college. You should definitely consider consolidating loans to reduce your payments but you must seek advice first as to what to do. It definitely helps.
August 17th, 2009 | #