HOW ARE DIRECT LOAN CONSOLIDATION INTEREST RATES CALCULATED?
The interest rate of a consolidation loan is the weighted average interest rate on all the loans you are consolidating. Use the online calculator on the Federal Loan Consolidation website to see whether consolidation will save you money. Federal legislation changed the interest rate structure on Federal Direct Stafford Loans and PLUS Loans from a variable interest rate to a fixed interest rate for loans received on or after July 1, 2006. The fixed interest rates for these loans are: • 6.0% Subsidized Federal Direct Stafford Loans for undergraduates (after July 1, 2008) • 6.8% Unsubsidized Federal Direct Stafford Loans and Subsidized Federal Direct Staff Loans for graduates • 7.9% Federal Direct PLUS Loans The interest rate on any loans received prior to July 1, 2006 will remain variable and will change July 1 each year. For more information on Direct Loan interest rates, click here. CONSOLIDATING OTHER FEDERAL LOANS: If you are borrowing loans such as Perkins, Health Professions, or Nu
