A rebate is an amount paid by way of reduction, return, or refund on what has already been paid or contributed. It is a type of sales promotionmarketers use primarily as incentives or supplements to product sales.

Student loan consolidation rebates are usually given by a private company when student loans are consolidated equaling more than $20,000. The more student loans consolidation, the higher the student loan consolidation rebate.

All this rebate is offered on Stafford loans and plus loans. The most common discounts offered on student loan consolidation are:

1. 0.25% reduction in rate if your EMI gets debited from your account directly.
2. 1% waiver in default fee depending upon the guarantor for the loan.
3. Additional rebate on making timely payments.
4. 2% reduction in rate after completion of 48 months

If you decide to go with a company,that is offering cash rebate option, please read the fine print thoroughly. Many companies say to submit a rebate form by a deadline to give the cash back benefit. If they don't receive the cash back form by the date,they will allow the borrower to get that rebate.

The federal student loan consolidation program is an excellent way to manage student loan debt as well as save thousands of dollars in interest payments. By asking the right questions and knowing what to look for, you can maximize your savings and make sure that you get the best deal possible on your consolidation loan.

Student loan consolidation interest rates  

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Student loan consolidation interest rates:

For the best type of student loan consolidation interest rates, you can find them on the internet. 

All you have to do is contact the lending companies that are willing to give you affordable repayment plans. Always look for those companies or sites who take time to share great financial advice, especially on how to effectively handle and manage your multiple college loans.

Do a research for the lowest interest rate reductions. On the market there are two available reductions. The first one says that most lenders offer reductions for consecutive on-time payment. 

The interest rates for student loan are based on annual rate in United States. These rates can be anywhere between minimum of 4.70% to maximum of 8.25% for the Federal Stafford loans and 9% for the Plus loans.

Student loan consolidation rates are not that different than what a graduate is already paying. The new rate on a student loan consolidation is simply the weighted-average of someone's current loan rates, rounded up to the nearest one-eighth of a percent (.125%).

For example, if three-quarters of your loan is at 8% and one-quarter is at 6%, the new rate would be calculated as the follows:

8% x .75 = 6.00%  


6% x .25 = 1.50%

Total New Rate = 7.50%

But it  is advisable first to check and study the terms and conditions that are presented by the college debt and loan provider.