What Is The Current Interest Rate For Student Loan Consolidation

Your new interest rate will remain fixed for the rest of the loan’s life. Although there is no cap on a consolidation loan’s interest rate, the rate tends to stay within 8.25%. You can use the Federal Student Aid’s interactive student loan interest rate calculator to estimate your consolidation loan’s interest rate.

Here is a list of our partners and here's how we make money. 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.

Loan consolidation lowers your payments by combining all of your current federal loans into one and extending the time you have to repay. The interest rate is the combined average of your current federal loan rates, and the term is based on how much you owe. Ready to consolidate federal student loans?

If the interest rate decreases, the cost of borrowing also decreases. Interest is calculated either at a fixed interest rate of Prime Rate + 2.0 %* or at a floating interest rate equal to the Prime Rate for Canada Student Loans and Canada-New Brunswick Integrated Student Loans.