Best rates for consolidating college loans

Posted by / 07-Sep-2018 04:23

When you consolidate federal loans, your new fixed interest rate will be the weighted average of your previous rates, rounded up to the next ⅛ of 1%.

So, for instance: If the average comes to 6.15%, your new interest rate will be 6.25%.

In 2016, EFC Members directly worked with over 2.5 million families to help them successfully plan, save, and pay for college.

EFC Members, who are intimately involved with their communities, have the knowledge necessary to serve the unique needs of their communities and states, and work to ensure that all families — especially middle-income borrowers and first-generation or low-income students with no family experience in the intricacies of education financing — are provided the tools and guidance they need to choose the best-fit school, borrow appropriately, complete their degree, maximize their earning potential, and successfully repay their loans.

If you have Perkins loans, think twice before consolidating them; you’ll lose access to Perkins loan cancellation if you do.

Federal loan servicers are private companies that manage federal loans for the Department of Education.

You can choose one of four servicers for your new direct consolidation loan: Fed Loan Servicing, Great Lakes Educational Loan Services Inc., Navient and Nelnet.

You’re generally eligible once you graduate, leave school or drop below half-time enrollment.

Consolidating your federal loans through the Department of Education is free; steer clear of companies that charge fees to consolidate them for you.

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Preserving this tax exemption would ensure that middle-income families and students — who already bear a great deal of the nation’s $1.4 trillion student debt burden — continue to have access to low-cost higher education financing options.

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