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The current student loan cap is at 8.25%. While nobody can predict what the rates will do this July 1, 2007, many experts predict the rates will go up nominally July 1st. When consolidating a student loan, the formula for consolidation is as follows:

Take the "weighted" average of the student loan rounded up to the nearest 1/8th. This is the fixed rate for the life of the loan. If the weighted average of the loan exceeds the cap, then the rate will automatically default to the published cap for the life of the loan.