Student Loan Consolidation Calculator

This student loan consolidation calculator combines several federal loans into a single Direct Consolidation Loan and shows the resulting interest rate, new monthly payment, and how the total interest compares to paying each loan separately.

Worked example (the defaults): three federal loans totaling $27,000 at a balance-weighted average of 6.50% consolidate into a single loan at that same 6.500% rate — federal rounding lands on the same figure here since it's already a clean eighth of a percent. Stretched to a 12-year consolidation term, the new payment is $270.52, about $36 lower per month than paying the three loans separately over 10 years — but the longer term means roughly $2,144 more in total interest over the life of the loan.

That trade-off — lower payment now, more interest overall — is the central decision in consolidation. To see the full schedule of your new consolidated loan, run the total balance and blended rate through the Student Loan Amortization Calculator. If you're comparing consolidation against a private refinance instead, note that refinancing uses a lender-set rate, not the federal weighted-average formula shown here.

Federal Direct Consolidation doesn't let you negotiate a new rate — it's set by formula, per the CFPB's explanation of consolidation rules and 34 CFR § 685.220:

1. Take the balance-weighted average of your existing loans' interest rates
2. Round the result up to the nearest 1/8 of a percent (0.125%)

That rounding is one-directional — it can only raise your blended rate, never lower it, which is why consolidation rarely saves money on interest rate alone. The savings, when there are any, come from stretching the term over more years, which lowers the monthly payment at the cost of more total interest.

Consolidation is a payment-simplification and cash-flow tool, not a rate-discount tool. It's worth doing when you're juggling several servicers and want one bill, when you need to access an income-driven repayment plan that requires Direct Loans, or when you need to get out of default and consolidation is part of that path. It's usually not worth doing purely to lower your rate, since the rate can only go up or stay flat relative to your current weighted average.

One thing consolidation resets: if you've made progress toward Public Service Loan Forgiveness or an income-driven forgiveness timeline, consolidating creates a new loan and can restart that payment count. Check your standing with your servicer before consolidating if forgiveness progress matters to you.