Students Loan Consolidation Rates

 Students Loan Consolidation Rates

Despite what many people think, college scholar combination charges are not that different than what a graduate is already shelling out. In fact, the new amount on a college scholar combination is simply the weighted-average of someone's current mortgage charges, rounded up to the nearest one-eighth of a percent (.125%).

For example, if three-quarters of your mortgage is at 8%, and one-quarter is at 6%, the new amount would be assessed as the follows:

8% x .75 = 6.00%
plus
6% x .25 = 1.50%

Total New Rate = 7.50%

Essentially, this is the same overall amount the client was shelling out prior to mortgage consolidation across all their financial lending products, but it's now been combined into one mortgage.

The only major potential drop in charges comes when the client has government PLUS financial lending products. Since many of these financial lending products have charges that exceed the highest possible college scholar combination amount of 8.25%, this portion of the weighted-average is capped at 8.25%. Thus, if you have multiple PLUS financial lending products at 8.50%, these could be combined into a new mortgage with a highest possible amount of 8.25%.

Keep in mind that Government college scholar combination charges only apply to Government financial lending products such as Stafford, Perkins, and PLUS financial lending products. Personal college scholar education financial lending products may also be combined, but not under the Government mortgage consolidation program. Be sure to talk to your private lender to explore the available mortgage consolidation options.

Categories: Students Loan Consolidation Rates