Current student loan consolidation interest rates

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christine
User offline. Last seen 2 weeks 9 hours ago. Offline
Joined: 11/26/2008

As of today, from https://loanconsolidation.ed.gov/appentry/appindex.html at the "current interest rate" for DIRECT LOANS:

1.   Current Consolidation Interest Rate.

The interest rate for a Direct Consolidation Loan is the weighted average of the interest rates on the loans being consolidated (as of the date we receive the application), rounded to the nearest higher one-eighth of one percent. This rate is fixed for the life of the loan and cannot exceed 8.25 percent. Use our online calculator, or call us at 1-800-557-7392, to estimate your weighted average interest rate and to see what your loan payments might be under each of our four repayment plans.

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That's HORRIBLE!  The MAIN point of consolidation is to lower the INTEREST RATE!

The American GOVERMENT exploits the American people, while giving literally TRILLIONS of dollars to the banks.

At https://loanconsolidation.ed.gov/appentry/appindex.html from "What are the benefits of a Direct Consolidation Loan?"

1. What are the benefits of a Direct Consolidation Loan?

Direct Consolidation Loans allow borrowers to combine one or more of their Federal education loans into a new loan that offers several advantages.

One Lender and One Monthly Payment
With only one lender and one monthly bill, it is easier than ever for borrowers to manage their debt. Borrowers have only one lender, the U.S. Department of Education, for all loans included in a Direct Consolidation Loan.

Flexible Repayment Options
Borrowers can choose from four different plans to repay their Direct Consolidation Loan, including an Income Contingent Repayment Plan. These plans are designed to be flexible to meet the different and changing needs of borrowers. With a Direct Consolidation Loan, borrowers can switch repayment plans at anytime.

No Minimum or Maximum Loan Amounts or Fees
There is no minimum amount required to qualify for a Direct Consolidation Loan! In addition, consolidation is free.

Varied Deferment Options
Borrowers with Direct Consolidation Loans may qualify for renewed deferment benefits. If borrowers have exhausted the deferment options on their current Federal education loans, a Direct Consolidation Loan may renew many of those deferment options. In addition, borrowers may be eligible for additional deferment options if they have an outstanding balance on a FFEL Program loan made before July 1, 1993, when they obtain their first Direct Loan.

Reduced Monthly Payments
A Direct Consolidation Loan may ease the strain on a borrower's budget by lowering the borrower's overall monthly payment. The minimum monthly payment on a Direct Consolidation Loan may be lower than the combined payments charged on a borrower's Federal education loans.

Retention of Subsidy Benefits
There are two (2) possible portions to a Direct Consolidation Loan: Subsidized and Unsubsidized. Borrowers retain their subsidy benefits on loans that are consolidated into the subsidized portion of a Direct Consolidation Loan.

Clearly, lower interest rates are NOT one of the benefits of Direct Loans UNLESS your rate is over the 8.25% maximum for the consolidated loan.

Just like the BANKERS, they sell you on LOWER PAYMENTS, resulting in MORE interest payments for your loans.

tibuan
User offline. Last seen 4 years 26 weeks ago. Offline
Joined: 02/04/2009
Nice questionaire as well as

Nice questionaire as well as the anwers. Good idea!

[SPAM DELETED]

christine
User offline. Last seen 2 weeks 9 hours ago. Offline
Joined: 11/26/2008
SPAM

If you have a blog, you know how much work it is to constantly deleted the spam.

His email: mastergidz1018@gmail.com (I know they're using free emails, but just in case anyone searches for it.)

PLEASE do NOT reward the spammers by visiting their sites.