As you settle to go for one of those Federal Student Loan Consolidation plans you may be concerned 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 commonly thought about on the basis of the midpoint of all student loan interest rates taken together. The rate of also fluctuates periodically. For example the Federal Student Loan Consolidation interest rates while July 1st 2006 to June 30th 2008 were 6.8%. The current rate is lower at 6% only.
Federal student 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 result from 01.07.2008. Stafford loans that are in grace period have been reduced to 3.6% against the existing 6.6%. Such loans in repayment 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 facts you can log on to any of the numerous websites that provides such facts on student loan consolidation interest rates. However it would be good to make some explore about the credibility of the provider before accepting the facts or guidance provided.
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