| The very reason why many students consolidate | | | | depending on the borrower's credit or the co-signers |
| their loans is because it is more convenient to them. | | | | credit that would mean then that you could have as |
| Consolidating is combining all the existing student loans | | | | low as 7.52 rate for the first year. Some would allow |
| of a person into just one new loan. This way he can | | | | the students to make an interest -only mode of |
| get lower interest rates. Student loans consolidation | | | | payment for the first two years of the repayment. |
| rate depends on the type of loan and the financing | | | | By doing so, you keep up with the accumulated value |
| company where you get it. | | | | of your loan but lessens your monthly payment. On |
| For a student federal loans consolidation, the rate is | | | | the first year of your loan closing, the interest rate |
| based on the weighted average of student loan | | | | changes to LIBOR plus six percent to 6.50 which |
| interest rate. The old interest rate was six point eight | | | | again depends on your credit history and that of |
| percent but loans of this kind that will be released | | | | your co-signer if you applied with one. Just recently |
| sooner will only have six percent. The following will be | | | | the annual percentage rate which is based on a |
| the new interest rates for these various consolidated | | | | thirty-year repayment period would be 9.58 to 10.90. |
| federal loans: From 8.02 percent parent plus loans are | | | | College graduates with existing private student loans |
| now down to a 5.01 percent rate. A 4.21 down from | | | | and federal student loans can be qualified for a |
| 7.22 for Stafford loans in repayment and 3.60 (from | | | | student loan consolidation. The good thing is, you |
| 6.62). Note that subsidized and unsubsidized rates | | | | don't need any application fees or out-of-the-pocket |
| change yearly but should never exceed 8.25. | | | | money for application. You can enjoy a lower |
| Consolidating your loan would help you cut your | | | | monthly payment for as low as forty-five percent. |
| monthly payment by as much as fifty percent. Good | | | | Now that you have a brief view on student loans |
| thing about this is that you can cut your monthly | | | | consolidation rate, you may now consider having one. |
| payment by as much as 50 with no credit checks; no | | | | Consolidating your existing loans is just easy. |
| fees and not even an application charge. It would also | | | | However, have a little more checking and comparison |
| reduce your interest rate by 0.6 during your grace | | | | among companies you are considering to apply for |
| period. | | | | the loan you so needed and wanted. Remember you |
| For private loan consolidation, you could have as low | | | | could have as many as eight student loans until you |
| as 7.52 interest rate. Some consolidators offer a first | | | | graduate from college but make sure that you can |
| year introductory interest rate which is equal to the | | | | still manage all your other needs and finances. |
| one month LIBOR which is currently 5.02 plus 2.50 | | | | |