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Student loans have variable interest rates set by the Federal Government each July. By consolidating this year, you are able to lock in the new lower rates for any eligible federal loans.
Loan Consolidation Calculator
This Loan Consolidation Calculator compares the monthly payments, interest rates and total cost of your current loans with the monthly payment, interest rate and total cost of a consolidation loan. It includes calculations of standard, extended and graduated repayment. It does not include a calculation of income contingent repayment.
Steps to Calculate Interest Rates
Step 1: Multiply each loan by its interest rate to obtain the "per loan weight factor."
Step 2: Add the per loan weight factors together.
Step 3: Add the loan amounts together.
Step 4: Divide the "total per loan weight factor" by the total loan amount and then multiply by 100.
Step 5: *Round the result of Step 4 to the nearest higher one-eighth of one percent if it is not already on an eighth of a percent.
Step 6: Compare the result of Step 5 with the interest rate cap of 8.25 percent. The fixed interest rate on the Direct Consolidation Loan will be the lower of the two.
Similarly, there are Loan Consolidation Calculators on the net providing free service. All you have to do is provide the required information and calculate the interest rate yourself.
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