Consolidating direct loans interest rate
Pay your bills on time, pay down any credit card debt and do not apply for any new credit in the months leading up to your student loan consolidation.These actions will improve your credit score, which plays a large role in determining the interest rate you get on your consolidation loan.So Fi rate ranges are current as of July 17, 2019 and are subject to change without notice. Lowest variable rate of 5.74% APR assumes current 1-month LIBOR rate of 2.41% plus 4.28% margin minus 0.25% Auto Pay discount.For the So Fi variable rate loan, the 1-month LIBOR index will adjust monthly and the loan payment will be re-amortized and may change monthly.Call or visit the websites of popular lenders for private student loans, including Sallie Mae, Chase, Wells Fargo, Next Student or Student Loan Network, to determine which organization has lowest interest rates, origination fees and other loan terms. If you have a co-signer, he needs to complete part of the application as well.In general, you will need to know the name of each lending company at which you have a private student loan, your account numbers and the balances on your loans.Fill out an application for a federal consolidation loan through the Department of Education's Direct Consolidation Loan website.You will need your personal identification information, including your Social Security number, the names and phone numbers of two personal references and basic loan information for all of the federal loans you want to consolidate.
Disclaimer The Annual Percentage Rate (APR) is the cost of credit as a yearly rate and ranges from 5.99%-29.99%, which may include an origination fee from 0.99%–5.99% that is deducted from loan proceeds.
The higher your credit score, the lower your interest rate.
Ask a parent, other relative or trusted friend with good credit to co-sign on the student loan consolidation with you.
Any origination fee on a loan term 4-years or longer will be at least 4.99%.
The loan term and the APR offered will depend on your credit score, income, debt payment obligations, loan amount, credit usage history and other factors.