Student Loan Consolidation Calculator

Student loan consolidation combines multiple student loans into a single new loan with one monthly payment. With federal Direct Consolidation Loans, your new interest rate is the weighted average of your existing loans' rates, rounded up to the nearest one-eighth of one percent. Private refinancing may offer a different rate based on your credit profile and income.

The blended rate is calculated by multiplying each loan's balance by its interest rate, summing those products, then dividing by the total combined balance. For federal consolidation, this result is then rounded up to the nearest 0.125%. This calculator shows you the exact blended rate before rounding so you can compare options.

It depends on your goal. Consolidation can lower your monthly payment by extending your repayment term, but a longer term typically means paying more total interest over the life of the loan. If you consolidate into a shorter term or secure a lower rate through private refinancing, you could save on total interest as well.

Federal Direct Loan Consolidation is offered by the U.S. Department of Education and keeps federal protections like income-driven repayment plans and Public Service Loan Forgiveness eligibility. Private refinancing is done through a bank or lender and may offer a lower rate, but you permanently lose access to federal loan benefits.

You can only consolidate federal loans through the federal Direct Consolidation Loan program. Private loans must be refinanced through a private lender. If you want to combine federal and private loans into one loan, you would need to refinance all of them privately, which means losing federal protections.

Federal consolidation terms range from 10 to 30 years depending on your total loan balance. Choosing a shorter term means higher monthly payments but significantly less interest paid overall. A longer term reduces your monthly burden but increases your total cost. Use the calculator to compare scenarios before deciding.

Federal consolidation does not require a credit check and has minimal impact on your credit. Private refinancing involves a hard credit inquiry, which may cause a small, temporary dip in your score. Over time, successfully managing a consolidated loan can improve your credit through on-time payments.

No — federal Direct Loan Consolidation is completely free through studentaid.gov. Be cautious of any third-party companies that charge fees to consolidate your loans on your behalf, as these services are unnecessary for federal loan consolidation.