Interest Rates for Student Loan Consolidations
How is my consolidated interest rate determined?
- By federal law, all student loan lenders must use the same
formula to determine your consolidated interest rate. The
interest rate is the weighted average of all consolidated loans
rounded up to the nearest 1/8th of 1%, or 8.25%, whichever is
less. We
do offer an additional benefits package that allows you
to decrease your interest rate and save thousands of dollars
over the life of the repayment period.
Will this interest rate ever change throughout the life of
the loan?
- No, the interest rate is locked for the life of the loan so
you never have to worry about the rate increasing over time.
Is there any way that I can improve on this interest rate?
- Yes, we offer an additional benefits package that allows
you to decrease your interest rate and save thousands
of dollars over the life of the repayment
period. This benefits
package has three money saving components:
- 1% interest rate reduction after you make 36 consecutive
on-time monthly payments
- 0.25% interest rate reduction, applied immediately, for
automatic debit from your checking
or savings accounts
- 0.6% interest rate reduction if consolidating during your
grace period
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