The fixed interest rate for federal student loan consolidation equals the weighted average of the interest rates of the loans being consolidated, rounded up to the nearest 1/8th of one percent and capped at 8.25%
Use Access Group's Weighted Interest Rate Calculator to determine your consolidation interest rate, or follow the example shown below.
Determine the Weighted Interest Rate: An Example
Loan Balances and Interest Rates$10,000 loan balance at 5.99% interest rate$7,500 loan balance at 6.79% interest rate$5,000 loan balance at 5.39% interest rate
Step 1: Multiply each outstanding loan balance by its interest rate.10,000 x 5.99 = 59,9007,500 x 6.79 = 50,9255,000 x 5.39 = 26,950
Step 2: Add the products.59,900 + 50,925 + 26,950 = 137,775
Step 3: Total the outstanding loan balances.10,000 + 7,500 + 5,000 = 22,500
Step 4: Divide the sum from Step 2 by the sum from Step 3.137,775 / 22,500 = 6.123
Step 5: Round the result of Step 4 up to the nearest 1/8th percent.6.123 up to the nearest 1/8th percent = 6.125
Fixed interest rate for this loan would be 6.125%
Tuesday, October 30, 2007
Sunday, September 30, 2007
Is A Federal Student Loan Consolidation An Option For You?
by: Dean Shainin
There are several advantages when you get a federal student loan consolidation. You can take advantage of fixed interest rates, lower monthly payments, one payment each month, get payment incentives and get new or renewed deferments.
There is usually not a minimum loan balance required with this type of loan program. Also, you have the option of which loans you may want to include and money saving payment incentive plans with some federal student loan consolidation programs.
Another advantage is that you can consolidate your undergraduate loans if you are still in graduate school. You can decide on what loans you want to consolidate from the loans that qualify.
However, federal student loan consolidation can’t include loans you may have received from banks, credit unions, personal loans, consumer debt loans or any other type of financial service loans that you may have applied for in the past. They have to be federal student loans to qualify.
What You Should Know Before You Apply For A Federal Student Loan Consolidation
There are several types of loans that qualify for federal student loan consolidation. When considering if your student loan can qualify, be sure to be very clear on interest rates and to see if you can save money with this type of consolidation loan. Sometimes student loan consolidation can increase your interest rate and cost you more than you are paying now.
Many federal student loans have a very low fixed interest rate already in place. This is why it is very important to be very clear on the rates from the plans you may be considering before you do a federal student loan consolidation.
What would be the point if you end up paying more for your consolidation loan? However, for some students it might be a good idea because of the hassles of trying to keep track of several student loan payments and monthly due dates.
Only you can decide if a federal student loan consolidation makes sense for your financial situation.
What Type Of Loans Qualify For Federal Student Loan Consolidation?
There are several federal student loans that may qualify for consolidation. Be sure to take some time to research the option you are considering and compare costs. You can use online calculators to get an estimate on payments. Check to see if your type of federal student loan will qualify for a federal student loan consolidation program.
10 Types Of Loans That Can Qualify For Consolidation
1. Federal Perkins Loan 2. Federal Stafford Loans 3. Federal Direct Loans 4. Federally Insured Student Loans 5. Federal Parent Loans 6. National Direct Student Loans 7. Nursing Student Loans 8. Health Education Assistance Loans 9. Health Profession Student Loans 10. Auxilary Loans To Assist Students
With some research and a little education you may be able to get a federal student loan consolidation to help ease the burden of having several student loans. You can focus on your education and new career instead of stressing out about trying to keep track of several loan payments and due dates.
With today’s Internet access, you now have an advantage when considering a federal student loan consolidation as an option. You can easily see if you qualify and get the best loan program for your financial situation.
There are several advantages when you get a federal student loan consolidation. You can take advantage of fixed interest rates, lower monthly payments, one payment each month, get payment incentives and get new or renewed deferments.
There is usually not a minimum loan balance required with this type of loan program. Also, you have the option of which loans you may want to include and money saving payment incentive plans with some federal student loan consolidation programs.
Another advantage is that you can consolidate your undergraduate loans if you are still in graduate school. You can decide on what loans you want to consolidate from the loans that qualify.
However, federal student loan consolidation can’t include loans you may have received from banks, credit unions, personal loans, consumer debt loans or any other type of financial service loans that you may have applied for in the past. They have to be federal student loans to qualify.
What You Should Know Before You Apply For A Federal Student Loan Consolidation
There are several types of loans that qualify for federal student loan consolidation. When considering if your student loan can qualify, be sure to be very clear on interest rates and to see if you can save money with this type of consolidation loan. Sometimes student loan consolidation can increase your interest rate and cost you more than you are paying now.
Many federal student loans have a very low fixed interest rate already in place. This is why it is very important to be very clear on the rates from the plans you may be considering before you do a federal student loan consolidation.
What would be the point if you end up paying more for your consolidation loan? However, for some students it might be a good idea because of the hassles of trying to keep track of several student loan payments and monthly due dates.
Only you can decide if a federal student loan consolidation makes sense for your financial situation.
What Type Of Loans Qualify For Federal Student Loan Consolidation?
There are several federal student loans that may qualify for consolidation. Be sure to take some time to research the option you are considering and compare costs. You can use online calculators to get an estimate on payments. Check to see if your type of federal student loan will qualify for a federal student loan consolidation program.
10 Types Of Loans That Can Qualify For Consolidation
1. Federal Perkins Loan 2. Federal Stafford Loans 3. Federal Direct Loans 4. Federally Insured Student Loans 5. Federal Parent Loans 6. National Direct Student Loans 7. Nursing Student Loans 8. Health Education Assistance Loans 9. Health Profession Student Loans 10. Auxilary Loans To Assist Students
With some research and a little education you may be able to get a federal student loan consolidation to help ease the burden of having several student loans. You can focus on your education and new career instead of stressing out about trying to keep track of several loan payments and due dates.
With today’s Internet access, you now have an advantage when considering a federal student loan consolidation as an option. You can easily see if you qualify and get the best loan program for your financial situation.
Consolidate Student Loans, Then Look for Work
(ARA) - Reduce your monthly student loan payments up to 53 percent at GradLoanCenter.com. You made it through school and are now faced with the challenges of the real world. You've worked hard to complete your studies and now it's time to find a job and create a career in the field of your choice as well as pay back those student loans. With a different loan for every year, and sometimes one for each semester; managing monthly loan payments can feel like a full time job in itself.
It doesn't' have to be that way. The federal student loan consolidation program has been established to thwart the challenges that ensue by trying to manage multiple student loan payments. By consolidating you avoid late payments, which are bad for your credit score, avoid going into default -- the worst thing that can happen to your credit -- and, most importantly, save money while making it easier on yourself.
What is student loan consolidation? All of your federal educational loans are consolidated into one, fixed-interest loan. This can translate to lowering monthly payments by up to 53 percent, depending on your balance. At GradLoanCenter.com, you receive direction and learn how to consolidate your loans. The Graduate Loan Center (GLC) focuses on helping students manage the high cost of paying for an education by offering the federal student loan consolidation program.
GLC enables student loan borrowers to bundle all their existing variable-rate federal student loans into one new fixed-rate loan, choose from a variety of repayment options with no prepayment penalties and make only one payment each month. You can also earn an additional interest rate reduction by having payments automatically deducted from your account. It doesn't get any easier than that.
In operation since 2002, GLC has consolidated over $2 billion in student loans and has grown at least 40 percent each year in loan volume; much of that due to referrals from satisfied customers. The federal government backs student loan consolidation and millions of individuals have taken advantage of this free program since its inception. This means no credit checks, no fees and no long application process.
You've succeeded in college. Don't let your student loans payments intimidate or overwhelm you. Make it easy and go to http://www.gradloancenter.com/webleads/default.aspx?code=CD103 and find out just how simple consolidating your loans can be and how much money can be saved on your monthly payment. Don't wait-consolidate your federal student loans today.
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