Federal Student Loan Consolidation Interest Rate

The fixed interest rate for federal student loan consolidation equals the weighted average of the interest rates of the loans being consolidated, rounded up to the nearest 1/8th of one percent and capped at 8.25%

Use Access Group's Weighted Interest Rate Calculator to determine your consolidation interest rate, or follow the example shown below.

Determine the Weighted Interest Rate: An Example

Loan Balances and Interest Rates$10,000 loan balance at 5.99% interest rate$7,500 loan balance at 6.79% interest rate$5,000 loan balance at 5.39% interest rate

Step 1: Multiply each outstanding loan balance by its interest rate.10,000 x 5.99 = 59,9007,500 x 6.79 = 50,9255,000 x 5.39 = 26,950

Step 2: Add the products.59,900 + 50,925 + 26,950 = 137,775

Step 3: Total the outstanding loan balances.10,000 + 7,500 + 5,000 = 22,500

Step 4: Divide the sum from Step 2 by the sum from Step 3.137,775 / 22,500 = 6.123

Step 5: Round the result of Step 4 up to the nearest 1/8th percent.6.123 up to the nearest 1/8th percent = 6.125

Fixed interest rate for this loan would be 6.125%