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How is the interest rate on a consolidation loan determined?

April 26, 2017consolidation Interest rate loan

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How is the interest rate on a consolidation loan determined?

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The interest rate is determined by taking a weighted average of the loans being consolidated, rounded up to the nearest one eighth of one percent, not to exceed 8.25%. If a HEAL Loan is included, the interest for the HEAL Loan will be a variable amount determined by the average of the bond equivalent rates of 91 day Treasury bills auctioned for the quarter ending June 30, plus 3.0%.