As you settle to go for one of those Federal Student Loan Consolidation plans you may be implicated about the interest rates you have to pay. Although the plan as well as the interest rates are largely regulated by the federal laws in force, you may also have a close look and make an in depth study of the plan you have opted for.
Student loan interest rates under the Federal plans are generally determined on the basis of the median of all student loan interest rates taken together. The rate of also fluctuates periodically. For example the Federal Student Loan Consolidation interest rates during July 1st 2006 to June 30th 2008 were 6.8%. The current rate is lower at 6% only.
Federal pupil Loan Interest Rates
Variable student loan interest rates
Student loans that were disbursed before the first day of July 2006 carry variable interest rates. Such rates could be converted into static one with loan consolidation. On consolidation these loans are readjusted on the first day of July every corresponding year.
Rates of interest have undergone changes with succeed from 01.07.2008. Stafford loans that are in grace duration have been reduced to 3.6% against the existing 6.6%. Such loans in refund now carry interest rates of 4.21% reduced from prevailing 7.22%. Similarly the Plus loan rates have also been reduced to 5.01% from the existing 8.02%.
For instant data you can log on to any of the numerous websites that provides such data on student loan consolidation interest rates. Any way it would be great to make some study about the credibility of the supplier before accepting the data or guidance provided.
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