Private Student Loan Consolidation Rates

Interest Rate As Low As 7.9%

Private student loan consolidation offers borrowers the benefit of a first year introductory interest rate equal to 3-Month LIBOR (London Interbank Offered Rate) plus 5% to 8.5%.

Origination fees range between 1% and 5% depending upon your individual credit or the credit of a co-signer. Fees are due at loan closing and are capitalized (added to the loan), which increases the amount borrowed but avoids any out-of-pocket expenses at loan closing.

Undergraduate Private Consolidation Program Description:

Based upon a $45,000 principal balance, a 300 month term and a LIBOR rate of 2.8% (as of 7/22/08); the Annual Percentage Rate (APR) would be 7.9% for a borrower with excellent credit who received a rate of LIBOR plus 5% and was assessed a fee of 1% of the loan amount.

Benefits of Private Student Loan Consolidation:

* Lower Monthly Payments: Most borrowers can reduce their monthly payment by extending the repayment term of their private student loan debt.
* Conditional pre-approval decision within minutes online or by phone.
* Reduced Interest Rates: Borrowers with improved credit may often lower their interest rate. Existing loan holders will not reduce your interest rate if your credit has improved.
* Rate Reductions: Borrowers may apply on their own or with a credit-worthy co-signer. Borrower and Co-signers with superior credit may receive lower APR loans.
* Internship/Residency & Military Deferment: A 48 month deferment for medical/dental residents and a 36 month deferment for all active-duty military personnel is available through the Graduate Leverage Private Consolidation Loan Program.
* Up to 25 Year Repayment Term: Borrowers may receive up to a 25 year repayment term which offers the lowest possible monthly payment.
* No Prepayment Penalties: All payments in excess of scheduled payments go directly to principal.

Student Loan Consolidation Interest Rates

The interest rates for federal student loan consolidations are based on the weighted average of student loan interest rates. Federal Stafford loans disbursed between July 1, 2006 and June 30, 2008 have an interest rate of 6.8%*. Stafford loans disbursed after July 1, 2008 have a rate of 6.0%.

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. Visit StaffordLoan.com or ParentPLUSLoan.com for more details on federal student loan interest rates.

Private Student Loan Consolidation Rates
Private student loan consolidation interest rates are variable, based on either the LIBOR (London Interbank Offered Rate) or the Prime rate, plus a margin for borrower and/or co-signer credit.

Origination fees can range between 1% and 5% depending upon your individual credit or the credit of a co-signer. Any fees that associated with the loan are capitalized (added to the loan) typically at the time repayment begins, which increases the amount borrowed but avoids any out-of-pocket expenses at loan closing.

*Interest rates on Federal Stafford Subsidized and Unsubsidized Loans change yearly but will never exceed 8.25%.

Student Loan Consolidation Benefits

How big is your monthly payment?
Let's face it, life after graduation can get very expensive. With all the living expenses tied into post grad life, including housing costs, car payments, and relocation, why worry about a huge school loan payment? Student loan consolidation can reduce your monthly payment, and help you manage your budget.

Take advantage of these benefits:
* Reduce your monthly payment by as much as 53%
* No penalties for early repayment
* Improve your credit score
* Simplify your monthly bill-paying paperwork with one payment a month
* No credit check, no co-signers needed, and no fees
* Consolidation loan interest is Federal Income Tax Deductible

How Student Loan Consolidation Works

We are here to make the student loan consolidation process easy by providing information and support via the web and phone. The following step-by-step guide will help you understand how consolidation works and how it will benefit you for years to come.

Step 1: Apply for Consolidation
The first step in consolidating your student loans is applying for a consolidation loan using our free, no-obligation application form. When you apply, you'll have the choice of receiving an application and information packet via eSignature or postal mail. Your packet will contain a consolidation application, as well as information about your discounts, and details on how your interest rate is computed.

Step 2: Locate Your Student Loans
As a result of recent changes at the Department of Education, you'll need to provide your student loan information with your consolidation application. There are several ways that you can locate your student loans and our loan counselors will gladly walk you through each process.

Step 3: Sign and Mail
Once you have reviewed the promissory note, and understand the terms, you will sign and return it to us. Either by eSignature online, or by sending the paper application back in our pre-paid envelope.

Step 4: Application Processing
Upon receiving your signed application, your loan counselor will check the application for errors. We also check to make sure it complies with all federal guidelines set forth for federal loan consolidation. This ensures that your application is completed quickly and accurately.

After your application is submitted for processing, the loan retrieval" begins. We contact your lenders for the exact amount you owe; this information is sent to us on a loan verification certificate, or LvC. This process can take up to 60 days depending on the response time from your lender(s). Once we have valid LvC's from your lender(s), we will send them a check for the balance of your student loans.

Once the check is sent to your lender(s), your loans have officially been consolidated. You will receive a new statement from us detailing when your first payment is due, and when each payment is due thereafter. Your previous lenders can take a week or two to close out your accounts, so do not be alarmed if you get a statement from us, and a statement from your old lender. This is normal.

Your first billing statement from us will include the automatic checking account withdrawal enrollment form. It will also include information on any other discounts you are eligible for. Your consolidation will now appear on your credit report. Your previous Stafford loans are paid in full. This is why consolidation is a smart idea for your credit rating - it shows that you have successfully paid off all your existing Stafford loans, which reduces the number of loans you owe, and shows you successfully paid off a series of debts, both of which increase your credit score.

Private student loan consolidation is a great way to significantly lower your monthly loan payments by combining all your private student loans into one manageable loan. Private student loan consolidation reduces the stress of multiple payments, and allows you to budget accordingly to meet your payment as well as lowering your interest rate.

Here's a chart showing your savings with private student loan consolidation:


*Assuming a 15 year loan term, with an original rate of 6.8%
**Assuming extended term of 25 years at same rate of 6.8%
***Interest rate and the resulting monthly payment(s) contingent upon borrower and/or co-signer credit

Other Benefits of Private Student Loan Consolidation:

* Lower Monthly Payments: With private student loan consolidation, most borrowers can reduce their monthly payment by extending the repayment term of their private student loan debt.
* Reduced Interest Rates: Borrowers with improved credit may often lower their interest rate. Existing loan holders will not reduce your interest rate if your credit has improved.
* Rate Reductions: Borrowers may apply on their own or with a credit-worthy co-signer for private student loan consolidation. Borrower and Co-signers with superior credit may receive lower APR loans.
* Internship/Residency & Military Deferment: A 48 month deferment for medical/dental residents and a 36 month deferment for all active-duty military personnel is available through the Graduate Leverage Private Student Loan Consolidation Program.
* Repayment Term: Undergraduate borrowers may receive up to a 25 year repayment term which offers the lowest possible monthly payment, and graduate student borrowers may receive up to a 30 year repayment term.
* No Prepayment Penalties: All payments in excess of scheduled payments go directly to principal.

Federal Student Loan Consolidation

Federal student loan consolidation is a fixed-rate refinancing program that combines all of your existing federal student loans into one new loan. Consolidation is a great tool for managing your finances - providing immediate payment relief and long term benefits. With our fast and convenient eSignature, your application will be complete in just a few minutes.

* Cut your monthly student loan payment by as much as 50%
* Simplify your finances with one monthly payment
* Improve your credit rating
* No credit checks, fees, or application charges
* Reduce your interest rate 0.6% by consolidating during your grace period.

Federal Student Loan Consolidation Payment Relief

One of the key benefits of consolidating your federal school loans is payment relief. By combining all of your student loans into one consolidated loan, you can lengthen your repayment term from the standard 10 years to up to 30 years, depending on the amount of your education debts. With a lower monthly payment, you'll have more money available to meet other living expenses, including car payments, housing expenses, and career-related necessities. Because there are no penalties for overpayment, you can make larger payments and reduce your repayment term when it becomes affordable. Learn more about how student loan consolidation works in this step-by-step tutorial.

Consolidating with Student loan Consolidator

Get one-on-one personalized customer service. Our loan counselors will educate you on the benefits of federal student loan consolidation and help you determine if consolidating is the right choice. We will explain the consolidation process and the repayment options that are available to you.

What Qualifies for Federal Student Loan Consolidation?

Federal loan consolidation can include Federal Stafford Loan consolidation, PLUS Loan consolidation, Direct Loan consolidation as well as Perkins Loans, HEAL Loans and all Federal FFELP and Direct Loans taken to pay for your education. Private student loan consolidation is different - You will lose your federal loan benefits if you consolidate your federal loans into a private loan consolidation.


Consolidating with Student loan Consolidator

Get one-on-one personalized customer service. Our loan counselors will educate you on the benefits of federal student loan consolidation and help you determine if consolidating is the right choice. We will explain the consolidation process and the repayment options that are available to you.