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