 |
The new fixed rate on your Federal Consolidation Loan is determined by taking
the weighted average of the interest rates on all your eligible loans to be
consolidated and rounding up to the nearest 1/8th%. If you are currently in
your loan grace period or eligible deferment period, you may qualify for a low
6.625% interest rate. If you are already in repayment, your interest rate may
be slightly higher. These rates apply for Stafford loans taken out since July
1, 1998.
Estimating your new payment amount - Take a look at this chart to see how you
can reduce your payments through consolidation.
| Example of monthly payment
reduction: |
| Current Loan Balance
|
$25,000 |
$35,000 |
$45,000 |
| Current Monthly Payment* |
$285 |
$400 |
$514 |
| New Consolidated Monthly Payment** |
$138 |
$193 |
$248 |
| Monthly Payment Reduction |
$147 |
$206 |
$265 |
| % Variance |
51.64% |
51.64% |
51.64% |
| Annual Payment Reduction |
$1,769 |
$2,476 |
$3,183 |
|
| * |
Current monthly payment is based on a variable
Stafford loan in its Grace Period (6.62%) with a 20-year Standard Repayment
Plan or 25-year Standard Repayment Plan for loan balance of $45,000. |
| ** |
New monthly payment is based on consolidating a vaiable
Stafford loan during its Grace Period (6.62%) over the first 1/3 of a Graduated
Repayment Plan with extended terms for eligible holders. |
|
