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"After January 31, 1999, the rule was going to be, whoever consolidated would get the average interest of all the loans they were consolidating, rounded to the next highest one-eighth. So if you had a bunch of loans averaging 7.19%, your rate would be 7.25%----fixed."- W505a.

Someone in an earlier post mentioned that this was a "weighted average". Is this correct? And precisely what is a "weighted average". I'm thinking that it means that a $10,000 loan will count twice as much as a $5,000 loan in an equation. Also, any references would be helpful. Thank you:)
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