When you consolidate federal loans, your new fixed interest rate will be the weighted average of your previous rates, rounded up to the next ⅛ of 1%.
Alternatively, there are six other repayment plans to choose from, including four income-driven plans.
To find the best plan for you, check out Federal Student Aid’s repayment estimators before you begin the consolidation application.
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We put together this guide to help you get information on all of the top student loan refinance lenders without having to jump around multiple websites.
There are two types of student loan consolidation: federal and private.
Private consolidation is often referred to as refinancing.If you’re a parent with PLUS loans and you also have other federal student loans, you may want to consolidate your PLUS loans in a separate consolidation loan; consolidating them with your other federal loans will make that consolidation loan ineligible for all income-driven repayment plans except income-contingent repayment.If you have Perkins loans, think twice before consolidating them; you’ll lose access to Perkins loan cancellation if you do.If your loans are already with one of those servicers, you can stay or choose a new one.On the standard repayment plan for direct consolidation loans, you’ll make equal monthly payments for 10 to 30 years, depending on your total federal student loan balance.7 out of 10 graduates are now graduating with some form of student loan debt.