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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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