Consolidating school loans interest rates
Variable APR rates may increase or decrease depending on fluctuations in the London Interbank Offered Rate (LIBOR) index.Monthly interest rate accrual is based on the published One–Month London Interbank Offered Rate ("LIBOR") as of the last business day of the previous month plus your applicable margin.††Times may vary and depend on the school and the borrower/co-signer providing complete information.
We encourage you to speak with your Federal loan servicer and/or research the options discussed here.
In both cases the monthly payment obligation would be reduced, therefore making repayment of the loan more manageable on a monthly basis.
However, extending a repayment term will result in a higher total cost of a loan.
A Federal Consolidation Loan provides a borrower the possibility of receiving an extended term on their Federal loan but cannot result in a reduced interest rate.
The new interest rate is simply a weighted average of the interest rates on the loans being consolidated.
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Refinancing is the process of replacing an existing student loan(s) with a new loan that has new terms (e.g. Consolidation is a form of refinancing to reduce multiple loans into a new single loan with new terms.