Interest Rate Facts       Current Interest Rates

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Here are some facts about how your student loan consolidation interest rate will be determined:

The lower your original interest rates,
the lower your consolidation interest rate.

Your new interest rate is calculated as the weighted average of the interest rates of the loans you choose to consolidate, rounded up to the nearest 1/8th of one percent or 8.25%, whichever is less.

To see an example of your weighted interest rate, click here.

Once you consolidate, you lock in a low interest rate
for the life of the loan.

Your consolidation interest rate is much lower than your previous loan rates, since it's a weighted average of those rates including discounts. Once you consolidate, you're locked in at that lower rate.

Interest rates are the lowest they've been in a long time and analysts are predicting that they are going to rise over the next decade. If you aren't locked in at a lower rate, your interest rates will rise with market rates. By consolidating your loans now, you'll save thousands over the life of the loan.

Enjoy extra savings during
grace and deferment periods

During grace and deferment periods, your interest rate can be reduced by .6%. By consolidating while in grace or deferment status, you can keep this low rate throughout the life of your loan.

Reduce your rate
an additional 1.25%

Once your consolidation loan is disbursed, you'll lock in an intereste rate that's lower than your previous amounts. That's because when you consolidate, you get 1.25% in discounts based on such criteria as on-time payments and auto-payments. Click here to see how much you'll save.

See our discounts page for more details.