Going to College costs a great deal of money. No only do you have to reconsider your tuition, you need to pay for textbooks, room and board. Students use student loans to pay for a amount of their college needs. Majority of these students have multiple student loans. Each loan has a dissimilar billing cycle, creditor, and interest rate. One way to make paying these loans easier is loan consolidation. Loan consolidation is having all your student loans turn into one new loan. This one loan is handled by one creditor. There are two methods of loan consolidation: Federal and incommunicable loan consolidation. When looking for a loan consolidation firm that's right for you, you need to reconsider their interest rates. Interest rates are a major part of any loan.
Federal loan consolidation is funded by the U.S. Government or the U.S. Division of Education. Whether the Government or the Division of study combines your multiple student loans into one new loan. The interest rate on Federal Loans change agreeing to the 91-day Treasury bill or T-Bill. This may vary each year, each May. Federal Loan Consolidation rates are set on the Us Treasury and by the Congress. The Federal interest rate is the weighted average of student loan interest rates. The interest rate for Stafford loans will be the T-Bill plus 1.7%, while for federal Plus loans, the rate is the T-Bill plus 2.3%.
pupil Loan Consolidation Interest Rate - Stafford Loans and Plus Loans
Federal loans are currently at a fixed rate, but that can change. Originally, the federal interest rate was a fixed rate, later turned into a variable, but on July 1, 2006 it returned back to a fixed rate. With federal loans there is a possibility it may change in the future. Federal loans consist of Stafford Loans and Plus Loans.
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