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Find Your Federal Student Loan Consolidation Interest Rate

First compute the weighted average of your federal student loans’ interest rates, then round it up to the nearest eighth.
Nov. 1, 2018
Loans, Student Loans
Find Your Federal Student Loan Consolidation Interest Rate
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Your federal student loan consolidation interest rate is the weighted average of your federal loans’ interest rates, rounded up to the next one-eighth of one percentage point. That means larger loans factor more significantly into your final interest rate.

Use the calculator below to find what rate you’ll pay after consolidating student loans. Round up your answer to the nearest eighth.

See your consolidation rate

How federal loan consolidation rates work

When you consolidate federal loans, you combine multiple loans into one, which leaves you with a single monthly payment.

There’s no limit to how high your interest rate could be. It won’t change throughout your repayment term.

For example, consolidating a $10,000 loan at 5% interest with a $20,000 loan at 7% interest will give you a 6.33% weighted average interest rate. That would be rounded up to 6.375%.

There’s no limit to how high your interest rate could be, but it won’t change throughout your repayment term.

You won’t pay less interest by consolidating student loans. Your payments might be lower because your payments are extended.

Consolidation could also help you qualify for certain income-driven repayment plans and forgiveness programs. You don’t have to consolidate all your federal loans — you can choose to consolidate only those that need it.

For instance, you must first consolidate parent PLUS loans before switching to the income-contingent repayment plan. You also must consolidate Perkins loans or those from the Family Education Loan Program in order to qualify them for Public Service Loan Forgiveness.

Consolidation is always free. Consolidate your federal loans on studentloans.gov.

» MORE: 10+ student loan forgiveness, cancellation and discharge programs

Other ways to cut your student loan interest rate

If you’re interested in saving money on interest, refinancing student loans may be a better bet than federal student loan consolidation.

If you’re interested in saving money on interest, refinancing student loans may be a better bet.

You can refinance both federal and private loans, not just federal loans. Refinancing is ideal for high-interest private loans in particular, since you’ll lose access to certain protections if you refinance federal loans.

Not everyone will qualify for refinancing. Your interest rate will depend on your credit score, income and other factors.

» MORE: Find your student loan refinancing interest rate

You can also lower your student loan interest rate by signing up for automatic monthly payments through your lender or getting a loyalty discount if you have a private loan through a bank that offers one.

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