Posted October 29, 2008 by

Finding a Reputable Student Loan Consolidation Lender

A typical consolidation loan designed to deal with student loans combines several student or parent loans for students into one comprehensive loan from one single lender. Consolidation loans are available for most federal student loans including FFELP (Stafford, PLUS and SLS), FISL, Perkins, NSL, HEAL, Guaranteed Student Loans and Direct loans. Generally, a person can end up saving money on the interest rate associated with a consolidated student loan. The interest rate is computed on a consolidation loan by weighing the average of all the existing interest rates on the student or parent loans that currently are in place. The consolidated student loan will be capped at 8.25% and will also be rounded up to the nearest 1/8 of a percent. While you can save money on the consolidated rate in some instances, you do need to keep in mind that the weighted average actually may not change the underlying interested cost of the loan overall because it actually is the average of the interest rates for the overall loan balance of the individual existing loans. Continue reading about how to find a reputable lender …
Article by, Athlon and courtesy of Student Loan Consolidation Rebate

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