· The new interest rate on the consolidated loan will be a fixed interest rate that is based solely on the weighted average of the interest rates of the loans being consolidated, rather than reflecting current rate trends based on economic conditions or considering the credit history of the individual borrower.
Student Loans. In general, you must meet the employer’s definition of full-time or work at least 30 hours per week, whichever is greater. For part-time employees with jobs at more than one qualifying employer, you may satisfy the requirement if you work a combined average of 30 hours or more per week.
If you have multiple loans, then your interest rate is a weighted average of your student loan interest rates. A standard repayment plan is 10 years, so if you make the required student loan payments each month, you will repay your student loans in 10 years.
With $100,000 in student loans averaging 7% interest, for example, you’d owe $1,161 per month on the standard plan. monthly payments assume a 7% average interest rate on the standard, 10-year federal.
At NerdWallet. loan will carry an interest rate that is the weighted average of your current loans rounded up to the nearest one-eighth of 1 percent. The repayment term is determined by the total.
“What’s so valuable is that if you have a lower interest rate, you can obviously save money on the interest you’ll have to pay over the course of your loan repayment.” pentis says there are other.
Weighted Average Formula. To figure the weighted average interest rate, multiply the balance of each loan by the interest rate. Next, add the results together to find the total per weight loan factor. Third, divide the result by the total of all the loans. For example, say you owe $3,000 at 5 percent, $5,000 at 4 percent and $2,000 at 7 percent.
With close to 45 million people who owe student loans, that’s about $35,000 a person. That’s close to the average price of a new automobile. The rise in higher education rates have been far ahead.
With the average student loan borrower currently paying interest rates around 6 percent, and some borrowers facing even higher rates, refinancing could enable many Americans to save thousands of.