Loan Consolidation
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Loan FAQs
Federal Loan Consolidation
- Current Interest rates on Student
Stafford loans disbursed after July 1, 2006 are at fixed rate of 6.8%.
Variable rate Stafford loans disbursed between July 1, 1998 and June
30, 2006 are at a variable rate of 6.62% while in grace and 7.22% if in
repayment status.
- By consolidating your federal loans you
could potentially lock in a fixed interest rate as low as 6.625%.
- Parent PLUS loans disbursed after July
1, 2006 are at fixed rate of 8.5%. Variable rate PLUS loans disbursed
between July 1, 1998 and June 30, 2006 are at a variable rate of
8.02%.
Loans disbursed before June 30,
1998 have a slightly higher rate
Eligibility
You are eligible to consolidate all or any combination
of your loans providing you
- You have a balance over $20,000 Are
separated from School (This does not apply for Parent Plus Loans) You
are in your Grace Period or in repayment You have not consolidated
before (This does not apply if you have a new federal loan to add to
your already consolidated Loans) You have multiple Lenders/Servicers.
- You are not in default. (no payment made
for 270 days)
Eligible Loans
The following loans are eligible for Federal Loan
Consolidation with Collegiate Funding.
- DSS- Direct Subsidized Stafford Loans
DUS- Direct Unsubsidized Stafford Loans DPLUS- Direct PLUS Loans DUCON-
Direct Unsubsidized Consolidation Loan, including Direct PLUS
Consolidation Loans SS-Subsidized Federal Stafford Loans, formerly
Guaranteed Student Loans (GSL) US - Unsubsidized and Non-subsidized
Federal Stafford Loans NSL-Federal Nursing Loans PERK- Federal Perkins
Loans, formerly Nations Defense/National Direct Student Loans (NDSL)
PLUS- Federal PLUS (Parent) Loans SCON- Subsidized Federal
Consolidation Loans UCON- Unsubsidized Federal Consolidation Loans
- SLS- Federal Supplemental Loans for
Students (formerly Auxiliary Loans to Assist Students (ALAS) and
Student PLUS Loans)
Interest Rates
If you consolidate today, you can lock in an incredibly
low interest rate for the life of the loan. Consolidation loan interest
rates are based on a weighted average of the rates on your existing
loans. The lower your original interest rates are, the lower your
consolidation interest rate will be.Once your consolidation loan is
disbursed, you'll lock in a weighted average of these low rates for the
life of your loan. Consolidation will save you a significant amount of
interest charges during the life of the loan.
The interest rate on your Federal Consolidation Loan is calculated on
the weighted average of the current interest rates based on the loan
disbursement date.
| CURRENT STAFFORD RATES* |
| Loan
Date |
Grace
Period |
Repayment |
| 7/06-6/07 |
6.80% |
6.80 % |
| 7/98-6/06 |
6.54% |
7.14 % |
| 7/95-6/98 |
7.34% |
7.94 % |
| 7/92-6/95 |
7.94% |
7.94 % |
|
LAST YEAR'S
STAFFORD RATES |
| Loan
Date |
Grace
Period |
Repayment |
| 7/98-6/06 |
4.70% |
5.30 % |
| 7/95-6/98 |
5.50% |
6.10 % |
| 7/92-6/95 |
6.10% |
6.10 % |
|
| CURRENT PLUS RATES* |
| Loan Date |
Repayment |
| 7/06-7/07 |
8.50
% |
| 7/98-6/06 |
7.94
% |
| 7/95-6/98 |
8.10
% |
| 7/92-6/95 |
8.25
% |
|
| LAST YEAR'S PLUS RATES |
| Loan Date |
Repayment |
| 7/98-6/06 |
6.10
% |
| 7/95-6/98 |
6.50
% |
| 7/92-6/95 |
6.50
% |
|
*Interest Rates effective 7/1/05-6/30/06
Repayment Plans
Three repayment plans are available with Federal Loan
Consolidation.
Standard Repayment Plan This plan allows for
standard, equal monthly payments. The length of the term depends on the
loan balance (see chart below). There is no prepayment penalty if you
pay early.
2-Year Graduated This is a good option for recent
graduates. Payments start out small for the first two years and
gradually increase over the course of the repayment period. Selecting
this repayment option may increase your overall interest costs.
Income-Sensitive This plan establishes payments
annually based on your expected monthly income. Wage documentation must
be provided before a repayment schedule can be determined. Selecting
this option may increase your total interest costs over the term of the
loan.
Extended Repayment If your loans exceed $30,000 you
have the option of extending repayment over a 25 year term with either
the fixed or graduated payment plan. If you have at least $40,000 in
debt you qualify for a 25 year repayment plan.
Payment Terms
| Loan Debt |
Repayment Term |
| $10,000 to $19,999 |
Up to 15 years |
| $20,000 to $39,999 |
Up to 20 years |
| $40,000 to $59,999 |
Up to 25 years |
| over $60,000 |
Up to 30 years |
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3 easy ways
to apply for a loan consolidation
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