How are Alternative Consolidation Student Loan interest rates?
Alternative Consolidation Loan Student may use a home equity loan to secure the private loan taken. Usually the interest rate is a fixed percentage say, 2% over and above the Libor rate. But this varying rate could be consolidated against the house loan thus locking in the interest on the consolidated loan. However, default could lead to losing out on property. However, Alternative Consolidation Sutdent Loan have no prepayment penalty and offer incentive for regular payment by reducing interest after a few years of consistent payment. Some of the lenders could consider reducing the interest rate rather than losing out the consolidation loan to another lender.
