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lock-in low, fixed interest rate

Lock-In Your Fixed Rate
What Does It Mean to You:
All student loans disbursed after July 1, 2006 will have fixed rates. So for students graduating now, you can lock-in your low FIXED interest rate before rates climb again.
  Old Stafford Rates New Stafford Rates
Loan Date Grace
7/98-6/06 4.70% 5.30% 6.54% 7.14%
7/95-6/98 5.50% 6.10% 7.34% 7.94%
7/94-6/95 6.10% 6.10% 7.94% 7.94%
  Old PLUS Loan Rates New PLUS Loan Rates
Loan Date Repayment Period Repayment Period
7/98-6/06 6.50% 7.94%
7/95-6/98 6.50% 8.34%
7/94-6/95 5.26% 8.34%
 where does the low advertised interest rate come from:
 click here

Calculating Your Consolidated Interest Rate

  • Your FIXED consolidated interest rate
    is based on a weighted average of the loans being consolidated rounded up to the nearest 1/8 of a percent.

    For example, if your student loans were disbursed from July, 1998 to the current date, your fixed consolidation interest rate will be as follows:

    • in-grace consolidation: 6.625%
    • in-repayment consolidation: 7.25%
Steps to calculate your actual consolidation rate

1. Enter each loan balance that you want to consolidate
with its current interest rate.
Press calculate
It will multiply the balance by its current interest to give you a weighted factor for each loan:
Loan Amt Interest Rate Weighted Factor
  X % =
  X % =
  X % =
  X % =
  X % =
  X % =
  X % =
  X % =
Add the weighted factors together
to get a weighted average:
Sum the outstanding balance
of all loans:
Divide the weighted average
by the loan balance. Convert the division to a percentage:
Now round the percentage up to the nearest 1/8 of a percent
or 8.25%, whichever is less. This is your estimated consolidation fixed rate:
Your interest rate will not exceed 8.25%
and it will remain fixed for the life of your loan.

Information about the in-grace discount


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