By obtaining a Consolidation Loan now, you will be given a FIXED interest rate as low as 6.375 percent depending on when your variable interest rate student loans were disbursed. Additionally, you may reduce the amount of your monthly student loan payments by as much as 50 percent.

The interest rate on a Consolidation Loan is FIXED for the entire life of the loan and is based on the weighted average interest rate of the loans being consolidated, rounded up to the nearest 1/8 percent. For borrowers submitting a consolidation application during their grace period, the interest rate of the Consolidation Loan will be based on the relatively lower grace period interest rate reported by the loan holder.

Also, as of July 1st 2006, low FIXED interest rates for Consolidation Loans which pay off Parent Loans for Undergraduate Students (PLUS loans or Direct PLUS Loans) went into effect.

By obtaining a Consolidation Loan which pays off PLUS loans before June 30th 2007, you will be given a FIXED interest rate that will never increase.