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%
If the decimal place of your rate is:
Round up to:
.001 through .125
.125
.126 through .250
.25
.251 through .375
.375
.376 through .500
.5
.501 through .625
.625
.626 through .750
.75
.751 through .875
.875
.876 through .000
the next full percent (.00)