rates of the student loan consolidation program can make the difference.

One of the major facets, when one applies for the consolidation of the student loans, is the resulting interest rates. The resulting interest rate would not be necessarily lower than all the existing loan rates which are being consolidated. In fact, the interest rate of the consolidation loan is an average, called the weighted average, of the interest rates of the participating loans. The other aspect, which is noteworthy, is the fact that the student loan consolidation does not basically alter the cost of the loan. The loan consolidation utilizes the impact of the individual loan interest rates and the proportion of the loan amounts, to arrive upon the final interest rates. Hence, those promising lower interest rates of the student loan consolidation program necessarily mean that the interest rates of the resulting loan would be between the highest and lowest interest rates of the loans being merged.

Thus, sometimes the net interest rates may be slightly higher than some of the loans which make up the consolidation program, as an impact of some of the loans which have a higher rate of interest than the rest. Aside this, the student loan consolidation program would not have any other additional cost, which needs to paid upfront. The final important aspect of loan consolidation is the interest rate would remain the same throughout the entire tenure.