Students have numerous options to choose from when selecting a loan consolidation service, depending on the amount to be repaid and the monthly income.
When choosing a student loan consolidation program, the most important factor to be considered is the interest rate. Various agencies offer special low student loan interest rates on Federal student consolidation loans. A consolidation with a low rate and a low monthly payment can save thousands in interest fees over the life of the loan. One needs to obtain multiple student loan consolidation quotes and compare rates, besides considering other parameters such as credit check, consolidation fees, early repayment options, and penalties.
Consolidation loan interest rates are based on a weighted average of the rates on the existing loans. The lower the original interest rates, the lower will be the consolidation interest rate. The interest rate on Federal Consolidation Loan is calculated on the weighted average of the current interest rates based on the loan disbursement date.
Federal Student Loan Consolidation Interest Rate: The Federal government sets interest rates for consolidation. The fixed interest rate equals the weighted average of the interest rates of the loans being consolidated. The maximum rate should not exceed 8.25%. You can use a Weighted Rate Interest Calculator, which is easily available online, to determine your consolidation interest rate.
Various student loan consolidation services available offer attractive schemes to those looking to consolidate their educational loans. To get the best deal, students are advised to obtain multiple student loan consolidation quotes and compare the rates and other factors.
When choosing a student loan consolidation program, the most important factor to be considered is the interest rate. Various agencies offer special low student loan interest rates on Federal student consolidation loans. A consolidation with a low rate and a low monthly payment can save thousands in interest fees over the life of the loan. One needs to obtain multiple student loan consolidation quotes and compare rates, besides considering other parameters such as credit check, consolidation fees, early repayment options, and penalties.
Consolidation loan interest rates are based on a weighted average of the rates on the existing loans. The lower the original interest rates, the lower will be the consolidation interest rate. The interest rate on Federal Consolidation Loan is calculated on the weighted average of the current interest rates based on the loan disbursement date.
Federal Student Loan Consolidation Interest Rate: The Federal government sets interest rates for consolidation. The fixed interest rate equals the weighted average of the interest rates of the loans being consolidated. The maximum rate should not exceed 8.25%. You can use a Weighted Rate Interest Calculator, which is easily available online, to determine your consolidation interest rate.
Various student loan consolidation services available offer attractive schemes to those looking to consolidate their educational loans. To get the best deal, students are advised to obtain multiple student loan consolidation quotes and compare the rates and other factors.
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