Student Loan Consolidation Rates

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Student Loan Consolidation Rates

The first thing one needs to know about student consolidation rates is they are federally regulated. They exist to reduce the monthly payments on student loans. Different interest rates exist depending on one’s financial situation, it could be up to 20 percent more or less each month.

The weighted average of student loan interest rates are what federal student loan consolidations are based upon. In the current academic year of 2010-2011, the standard subsidized rates are 4.50 percent while unsubsidized graduate rates are at 6.80 percent. The other unsubsidized graduate rates for the academic terms of 2010-2011 are expected to stay at 6.80 percent.

This is mainly because federal student loans will have different rates due to type and reimbursement rates. The Federal Stafford subsidized and unsubsidized loans will change yearly but luckily never exceed 8.25 percent. Private student loan consolidation rates are also an option because they lower monthly loan payments by combining private student loans into a manageable loan. The Federal Stafford loans should be your first option if you qualify, if you do not explore private financial institutional to consolidate student loans.



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