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Student Loan Financial Group Announces Interest Rates on Variable-rate Loans Increasing July 1st
Federal Student Loan Consolidation , today announced that interest rates on existing variable-rate student loans will climb eight basis points, or .08 percentage points July 1, 2007. While interest rates on new Federal Stafford and PLUS loans are fixed under federal law, students, graduates and parents who have older, variable-rate student loans can take advantage of the lower rate if they apply for student loan consolidation by June 30.Most federal Stafford and PLUS loans first disbursed before July 1, 2006 charge variable interest rates that are set by federal formula and based on the last auction of 91-day U.S. Treasury bills in May.
Interest rates on loans disbursed after that date are fixed at 6.8 percent (Stafford) and 8.5 percent (PLUS)”This Spring 2007, college grad’s who still have variable rate loans may consider applying to consolidate before their six month, post grad grace period ends,” said John Wrinn, President, Student Loan Financial Group. “Students can lock in a lower rate if they lock the rate prior to June 30th. Also, parents with PLUS loans will save an eight of a percent by consolidating before July 1st, instead of waiting.When a student decides to consolidate their student loans, the loan consolidation lender pays off the student’s current federal student loans in full and creates a new loan, with a new interest rate and a longer repayment term. Federal student loan consolidation has a fixed interest rate, based on the weighted average of the interest rates of the student loans being consolidated, rounded up to the nearest 0.125 percent or 8.25 percent, whichever is less.
For existing Federal Stafford and PLUS loans that still carry a variable interest rate, the interest rates as of July 1, 2007 will be:Stafford Loans (in school, grace and deferment periods): 6.62 percent Stafford Loans (repayment): 7.22 percent — PLUS Loans: 8.02 percentIn addition, there is no credit checks, no fees, no prepayment penalties as well as student loan consolidation can reduce the monthly payment amount by nearly 50 percent. That is because student loan consolidation stretches the repayment period from the standard 10 years to up to 30 years, depending on the amount of the education debt.Student and parent customers who consolidate their Stafford, PLUS and other eligible federal student loans using a Student Loan Financial Group Consolidation Loan can also reduce their interest rate by an additional 1.25 percentage points by making scheduled loan payments on time, and by using automatic debit to make payments electronically. Combined, these benefits can provide the average customer with $4,300 in savings on a $20,000 loan.
Posted in federal student loan, consolidate loan, federal student loan consolidation, finance loan, loan rate, federal loan consolidation, loan, student loan consolidation, consolidate loan student, consolidation loan, student loan | Comments(0) June 2007
Student Loan Consolidation Interest Rates
Federal student loans taken out on or after July 1, 2006 have an interest rate of 6.8%*. Federal student loans disbursed before July 1, 2006 will remain variable interest rate loans. These loans will re-adjust every July 1 based on the results of the 91-day Treasury Bill Auctions. Currently, interest rates for these loans are:
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Stafford Loans for students in grace: 6.543%
- Stafford Loans for graduates in repayment: 7.143%
- Parent PLUS Loans disbursed after July 1, 1998 but before July 1, 2006: 7.943%
- Parent PLUS Loans disbursed after July 1, 2006: 8.50%
- Consolidation Loan Rates: The weighted average of the existing rates on loans included in the consolidation
For recent college graduates, consolidation is an excellent repayment option. Federal student loan consolidation with StudentLoanConsolidator can reduce monthly student loan payments by as much as 53%, providing payment relief when it’s needed the most
Posted in loan rate, federal student loan, consolidate loan, federal student loan consolidation, consolidation loan, loan calculator, loan, student loan consolidation, consolidate loan student, student loan | Comments(0) June 2007
Private Student Loan Consolidation
A way to consolidate virtually all private, non-federal education borrowing into one simple bill and one monthly payment. Consolidating your private student loan debt will help simplify your monthly finances and lower your monthly student loan payments. We recommend that you consolidate all your federal student loans first and separately, then apply for a private student loan consolidation. Federal student loan consolidation combines all of your loans into one new loan reflecting a positive payment history, helping improve your credit score. Private consolidation interest rates are credit-based. By consolidating your federal student loans first and improving your credit score, you could get a better interest rate.
Posted in consolidate loan, federal student loan consolidation, federal student loan, consolidation loan, consolidate loan student, loan | Comments(0) June 2007
Consolidating Student Loans
Student loan rates will jump 2 percent on July 1, so the time to consolidate is now!
June 30 marks the deadline for college graduates to lock in the lowest student loan interest rates on record. According to FinAid, two-thirds of undergraduate students graduate with some debt. In fact, the average federal student loan debt is about $17,000 (Stafford and Perkins Loans), and $20,000 when PLUS Loans are included.
Posted in federal student loan, federal student loan consolidation, federal loan consolidation, consolidate loan student, student loan consolidation, student loan | Comments(0) June 2007
