Student Loan Consolidation: How to Get a Fixed Interest Rate

Securing a fixed interest rate on your student loan consolidation will provide you with stability and predictability. However, fixed interest rates are harder to secure than variable rates. Try these tips to get a fixed rate:

Consolidate Federal Loans

If you have any federal student loans you can consolidate them with the US Department of Education's consolidation program. This program has a guaranteed fixed interest rate. Never consolidate the loans to a private, third party lender. A third party lender will give you higher interest rates and less favorable terms.

Pay Down High Rate Loans

Most students have multiple loans to pay for school. Instead of consolidating all loans, consolidate only those moderate rate and low rate loans. Pay the high rate loans down separately and be sure they are first to be paid. Since you are consolidating only moderate to low rate loans, you will be more likely to receive a fixed interest rate.

Offer Collateral

You may be seeking consolidation after you have had the opportunity to work, earn a salary and purchase assets. In this case, any of the assets you own may be used as collateral to secure a fixed rate loan. Consider using some of the collateral to get better rates and terms on your loan.


Need a Student Loan? Click here!
blog comments powered by Disqus