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How is the fixed interest rate determined?

April 26, 2017fixed Interest rate

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How is the fixed interest rate determined?

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The interest rate is federally mandated and is determined by taking the weighted average of the loans you are consolidating and their current interest rates and rounding up to the nearest one-eighth of a percent. Stafford and PLUS loans originated after July 1, 2006 have fixed interest rates. You do not have to consolidate those loans in order to achieve a fixed interest rate.