The interest rate charged on your federal Stafford Loans currently have variable interest rates. An advantage to consolidating these types of loans is that the consolidation loan will have a fixed rate. There is no “set” rate that you would be offered, instead it is determined by taking the weighted average for the interest rates currently charged on the loans you are wanting to consolidate. The rate for these federally funded student loans will not exceed 8.25 percent. A PLUS Loan consolidation will not exceed 9.0 percent. If you have student loans through a private lender you want to consolidate, the interest rate will vary depending on your student loan consolidator. Typically, the interest rate offered through the federal government for federally funded consolidated loans will be lower than rates charged on private consolidation loans.

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