Interest Rate
The rates in effect from July 1, 2008 through June 30, 2009 are as follows (based upon the first disbursement date):
| Loan Type
|
Fixed
|
Variable
In-School, Grace, or Deferment
|
Variable
Repayment or Forbearance
|
Stafford
(after 6/30/2006)
|
6.8
|
n/a
|
n/a
|
Stafford
(7/1/1998 - 6/30/2006)
|
n/a
|
3.61
|
4.21
|
Stafford
(before 7/1/1998)
|
n/a
|
TBD
|
TBD
|
PLUS
(after 6/30/2006)
|
8.5
|
n/a
|
n/a
|
PLUS
(before 7/1/2006)
|
n/a
|
5.01
|
5.01
|
The interest rate on your consolidation loan is a fixed rate for the term of the loan and is based on the weighted average
interest rate of the loans being consolidated, rounded up to the nearest
one-eighth percent or 8.25 percent, whichever is less.
Knowing that the interest rate on a Federal Consolidation Loan is based on the rates of the loans that go into it,
you will want to consolidate while your loans are in their grace period.
Use our
calculator to see what interest rate you could lock into with our T.H.E. Federal Consolidation Loan.
The interest rate on the HEAL portion of a consolidation loan is a variable rate that is adjusted annually on July 1st. This rate is set at 3 percent over the bond-equivalent rate for the three month Treasury Bills auctioned during the three months ending June 30. There is no cap on the HEAL interest rate.
|
Federal Loan Consolidation
