Tuesday, October 26, 2010

Federal loans disbursed before July 1, 2006

* Currently, the interest rates for Federal loans disbursed before July 1, 2006 are at an all time low:
  • Stafford Loan (in school/grace period): 1.88%
  • Stafford Loan (in repayment): 2.48%
  • Federal PLUS loan: 3.28%
If you still have Federal loans at a variable interest rate now is the time to consolidate. When you consolidate Federal loans the interest rate is the weighted average of all your loans rounded up to the nearest 1/8 percent. This would result in final consolidation interest rates of:
  • Stafford Loan (in school/grace period): 2.0%
  • Stafford Loan (in repayment): 2.50%
  • Federal PLUS loan: 3.38% 


* Interest rates on Federal Stafford Subsidized and Unsubsidized Loans change yearly but will never exceed 8.25%.

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