Student Loan Consolidation Interest Rates

If reducing your monthly payment obligation on your student loans is a big goal, then learning more about student loan consolidation interest rates is absolutely crucial. Your payment could be up to 20% more or less each month depending on what your interest rate clocks in at.

Federal Student Loan Consolidation Rates

The interest rates for federal student loan consolidations are based on the weighted average of student loan interest rates. View the chart below to see where your loan falls in the spectrum.

Academic Year: (2010-11)Subsidized Rates: (4.50%) Unsubsidized/Graduate Rate: (6.80%)

Academic Year: (2011-12)Subsidized Rates: (3.40%) Unsubsidized/Graduate Rate: (6.80%)

Academic Year: (2012-13)Subsidized Rates: (6.80%) Unsubsidized/Graduate Rate: (6.80%)


Current Stafford Loan interest rates in effect from 07/01/2011 to 06/30/2012

Federal student loans will have different rates depending on type and disbursement dates. For example, rates for Stafford loan disbursed before July 1, 2006 will remain variable until consolidated.

Currently, the interest rates for Federal loans disbursed before July 1, 2006 are at an all time low:

• Stafford Loan (in school/grace period): 1.88%
• Stafford Loan (in repayment): 2.48%
• Federal PLUS loan: 3.28%

If you still have Federal loans at a variable interest rate now is the time to consolidate. When you consolidate Federal loans the interest rate is the weighted average of all your loans rounded up to the nearest 1/8 percent. This would result in final consolidation interest rates of:

• Stafford Loan (in school/grace period): 2.0%
• Stafford Loan (in repayment): 2.50%
• Federal PLUS loan: 3.38%