Rates and Benefits
Fixed interest rates.
Apply now for a student loan consolidation and get a fixed interest rate.
No more worries about variable interest rates going higher and leaving you guessing about your monthly student loan payment amount.
And your rate will never be more than 8.25%—guaranteed.
How is my student loan consolidation rate calculated?
When you consolidate your student loans, your consolidated interest rate will be based on the weighted average of the interest rates on the student loans being consolidated. †
That’s just a complicated way of saying that the interest rates on your larger student loans will affect your consolidated rate more than the interest rates on your smaller student loans.
The weighted average is then rounded up to the nearest 0.125%, with a maximum rate of 8.25%. This will be your fixed interest rate on your student loan consolidation.
1. Add up the outstanding loan amounts on the loans you’re consolidating to determine your total student loan Consolidation Amount. For example, if you’re consolidating three loans:
Loan 1 amount + Loan 2 amount + Loan 3 amount = Consolidation Amount
2. Divide each outstanding loan amount by the Consolidation Amount you calculated in Step 1 to determine the Weighted Percentage for each loan being consolidated:
Loan 1 amount ÷ Consolidation Amount = Loan 1 Weighted Percentage
Loan 2 amount ÷ Consolidation Amount = Loan 2 Weighted Percentage
Loan 3 amount ÷ Consolidation Amount = Loan 3 Weighted Percentage
3. Multiply the interest rate on each loan being consolidated by that loan’s Weighted Percentage (which you calculated in Step 2) to get the Weighted Interest Rate for each loan:
Loan 1 interest rate x Loan 1 Weighted Percentage = Loan 1 Weighted Interest Rate
Loan 2 interest rate x Loan 2 Weighted Percentage = Loan 2 Weighted Interest Rate
Loan 3 interest rate x Loan 3 Weighted Percentage = Loan 3 Weighted Interest Rate
4. Add up the Weighted Interest Rates from Step 3 and divide that total by the number of loans being consolidated to get your Weighted Average Interest Rate, which will determine your student loan consolidation rate:
(Loan 1 Weighted Interest Rate + Loan 2 Weighted Interest Rate + Loan 3 Weighted Interest Rate) ÷ 3 = Weighted Average Interest Rate
Round your Weighted Average Interest Rate from Step 4 up to the nearest 0.125%. That rounded number or 8.25%, whichever is less, will be your fixed student loan consolidation rate.
Why student loan consolidation?
Which college loans can I consolidate?
How much does student loan consolidation cost?
