Student loan consolidation rates

Student loans can be consolidated to get rid of many monthly repayments of debts, but consolidating at right rates can be a smarter move to make repayments easier. There are two types of service providers which offer various student loan consolidation rates, Federal Government, and Private Lenders. Usually, the consolidation rates are lower with the private lenders, also providing an option of fixed, variable and hybrid rates of interest, as compared to federal government.

The rate provided by the federal government is fixed throughout the time period of the loan and is calculated by taking out the average of all the individual rates of interest of the previous loans. This average is then rounded off to the nearest one-eighth of a %. On the contrary, except for the low consolidation rates, the federal government system provides the variety of flexible schemes to make the entire loan procedure easy.

Please be careful, in most cases, there are no processing fees or charges for any type of student loan consolidation. If there might be some, they shall be deducted from the amount which shall be disbursed to you. There are no ‘upfront fees’ of any kind. If you find anything like this, you may be in for a scam.

Let us have a look at some companies who provide competitive student Loan consolidation rates in the market:

  •    SoFi: This Company provides both refinance and consolidation of loans. Lowest rate for variable rates is 2.795% and for fixed rates is 3.35%. Repayment terms are of 5, 7, 10, 15 and 20 years. The application process is easy with no fees of any kind.
  •    Citizens Bank: This Company provides both refinance and consolidation of loans. Lowest rate for variable rates is 2.78% and for fixed rates is 3.74%. Repayment terms are of 5, 10, 15 and 20 years. The application process is easy with no fees of any kind. This company has a condition that the student must have taken a loan of minimum $10,000 to get it refinanced.
  •    LendKey: This Company provides both refinance and consolidation of loans. Lowest rate for variable rates is 2.67% and for fixed rates is 3.25%. Repayment terms are of 5, 7, 10, 15 and 20 years. The application process is easy with no fees of any kind.
  •    ELFI – Education Loan Finance: This Company provides an attractive student loan consolidation rates and refinancing of loans. Lowest rate for variable rates is 2.49% and for fixed rates is 3.19%. Repayment terms are of 5, 7, 10, 15 and 20 years. The application process is easy with no fees of any kind. It also provides a fast track bonus of $100 for completing paperwork in 30 days.
  •    CommonBond: This Company provides both refinance and consolidation of loans up to $500,000. Lowest rate for variable rates is 2.79% and for fixed rates is 3.35%. There is a facility of hybrid rates also with lowest at 3.80%. Repayment terms are of 5, 10, 15 and 20 years. The application process is easy with no fees of any kind.