Consolidating school loans rates

There is no cap on the interest rates on new federal consolidation loans made on or after July 1, 2013.When federal student loans had variable rates, federal consolidation loans could be used to lock in the current rate on the loans.Please note, from here on out, we consider "consolidation" and "refinancing" the same thing.All of these companies have been vetted by The Student Loan Report team for product quality, security, and customer experience.

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Through June 30, 2013 the interest rates on a consolidation loan were capped at 8.25%. Consolidation provides grads with the ability to combine their student loans into one megaloan, but it comes with drawbacks. Along with gaining a new degree, many graduates will also leave campus with new student loan payments they'll have to fit into their post-graduate budgets.If you would like to add other eligible loans, your servicer must receive your Request to Add Loans Form within 180 days from the date your Direct Consolidation Loan is completed (originated).If you choose Nelnet to originate and service your Direct Consolidation Loan, you may request to add other eligible loans to it by completing the Request to Add Loans Form and send it to Nelnet via email Direct Loan [email protected], fax (402.858.3929), or mail to: Nelnet P. For example , if a borrower had a ,500 loan at 3.4% and a ,000 loan at 6.8%, the interest rate on the federal consolidation loan would be This would then be rounded up to the nearest 1/8th of a point, or 5.375%.

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