Loan Consolidation - |
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Do you have any variable rate Stafford loans (taken out before 7/1/06)? The variable interest rate increases when your grace period ends. If you apply for a consolidation application before your grace period ends, you may lock in a lower interest rate.
Variable interest rates are also adjusted each year on July 1st and may increase or decrease. On July 1st 2008, variable interest rates are expected to decrease significantly, so you may want to wait to see if you would receive a lower interest rate by applying to consolidate after this date. We will post the new interest rates during June. Do you have only fixed interest rate Stafford loans (taken out since 7/1/02006)? If you only have fixed interest rate Stafford loans, the interest rate you receive on a consolidation loan is the same whether you consolidate before or after your grace period end.Loan consolidation allows you to:
- combine your eligible federal education loans
- lock in your interest rate
- lower your payment amount, if needed
If you choose to apply during your grace period, you may delay processing of your consolidation loan until the end of your grace period. This allows you to take full advantage of your six-month grace period. The interest rate used to calculate your consolidation rate would be the current rate at the time we received your application.
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All federal loan types are eligible for loan consolidation. Learn more.
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Consolidation loan interest rates are calculated using a weighted average. Learn more.
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VSAC offers a 1% interest rate reduction after 36 on-time payments. Learn more.
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There is no fee to apply.
Not sure if your VSAC Stafford loan is in grace? Register for or log on to Account Access.
Learn more
- What is consolidation?
- What are the pros and cons of consolidating?
- Why choose VSAC?
- Am I eligible?
- What will my repayment terms be?
- Other frequently asked questions
