Stafford Student Loan Consolidation Interest Rates
Stafford Student Loan | Consolidation Interest Rates Much of the dollars available for student aid is provided through federal student aid programs through grants, loans, or work studies. These student loans such as the Stafford are backed by the federal government keeping the interest rates low to help students repay there debts. Many times students are faced with multiple Stafford loans that are due for repayment and consolidation of these fixed-rate loans into one new low interest loan can be an option for repayment. The Stafford student loan is a federal student loan program offering normally two types of fixed interest rate loans: Subsidized: The government will pay the interest while a student is actively enrolled in school and then for the first six months after graduation. This type of Stafford loan is considered need based and qualification is determined by filling out a Free Application for Federal Student Aid (FAFSA). Unsubsidized: This type of Stafford student loan is a straight loan no matter what an individuals level of need. The loan’s interest payments can be accrued and rolled into the principal if a student so chooses. In both cases, the student is responsible to repay the loan at fixed rates of interest. Interest rates for each type of Stafford loan are set by the Federal government at rates usually much lower and are fixed for the entirety of the loan repayment period. For the 2010/2011 year the rate for subsidized loans is 4.5% and for unsubsidized 6.8% respectively, while these rates are set equally at 6.8% as projected for 2013. The amount a student can borrow at this interest rate depends on many factors including financial need, length of enrollment in school, and many others. For a more detail on qualifying for Stafford loans you can visit the federal student aid websites. Several Stafford loans can be consolidated into one new loan through fixed rate refinancing. Several fixed rate refinancing programs are available that offer consolidation for Stafford loans to meet your financing needs. |
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