As soon as you graduate from college the one of the first things students think about besides getting a job is paying off all those student loans. If you’ve got lots of student loans with medium to high interest rates you should really consider looking for a way to combine all those loans into a low interest rate consolidation loan.
Typically, those who can get such consolidation loans are those who have government issued student loans. It is possible to get consolidation loans for private student loans, but the interest rates tend to be much higher for private loans than they do for the government backed loans. The government backed loans, also known as Stafford loans, are offered to student from families that meet the financial requirements set up by the program.
You can find a low interest student loan consolidation plan available at any lending establishment which is part of the Stafford loan education program. To see if your financial organization is part of the program simply give them a call and ask, or check their website to see if they list their government student loan affiliation. You do not have to get a low interest rate consolidation loan from the financial institution that you got your other student loans from, but you do need to make sure that the institution you are considering is part of the Stafford loan program.
The interest rate for a low interest government backed student loan consolidation varies, and is based on the average of the interest rates for the loans you currently have. The finalized interest rate is dictated by calculating the interest rates of the existing student loans and then rounding to the nearest 1/8 % point. Usually the the interest rate is somewhere between 3% – 6% and that is probably a lot better than paying separate loans at a higher interest rate..
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