Is consolidation right for you?

This example is based on a borrower with a $20,000 loan debt that has neverentered repayment status (two $5,000 loans at 6.32 percent and two $5,000loans at 7.66 percent). This borrower’s weighted average interest rate is 7percent. The same borrower would have a weighted average interest rate of7.625 percent if he or she consolidated after entering repayment (two $5,000loans at 6.92 percent and two $5,000 loans at 8.25 percent).

IN-SCHOOL CONSOLIDATION SAVINGS

Loan Term --------------Savings -------------- Repayment Plan
10 years --------------$1,779 --------------- ---Standard
12 years ----------------- $1,822 ------------------Extended
20 years -----------------$1,893 --------------------Graduated