Student Loan Consolidation Interest Rates

The interest rates for federal student loan consolidations are based on the weighted average of student loan interest rates. All Federal Stafford loans disbursed between July 1, 2006 and June 30, 2008 have an interest rate of 6.8%*. Subsidized Stafford loans disbursed between July 1, 2008 and July 1, 2009 have a rate of 6.0%, and Subsidized Stafford loans disbursed after July 1, 2009 have a rate of 5.6%. Currently, Unsubsidized Stafford loans remain at 6.8%.

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%

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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%
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.