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.
Six steps to calculate the Weighted Average Interest Rate
Step 1:
Multiply each loan by its interest rate to obtain the "per loan weight factor."
Step 2:
Add the per loan weight factors together.
Step 3:
Add the loan amounts together.
Step 4:
Divide the "total per loan weight factor" by the total loan amount and then multiply by 100.
Step 5:
*Round the result of Step 4 to the nearest higher one-eighth of one percent if it is not already on an eighth of a percent.
Step 6:
Compare the result of Step 5 with the interest rate cap of 8.25 percent. The fixed interest rate on the Direct Consolidation Loan will be the lower of the two.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment