One loan is ,000 @ 6.5% interest, the second loan is ,000 @ 3.5% interest.

consolidating student loans through department education-24

The Direct Loan program now has a $1 trillion dollar balance, with a yearly increase in the hundreds of billions of dollars being lent to students.

There are quite a few good reasons to consider consolidating your federal student loans.

Finding the right bank to refinance or consolidate your student loans is confusing.

Fortunately, we’ve highlighted the six best banks and lenders to help you refinance and consolidate both private and federal student loans, based on your financial situation.

This method takes the average weight(balance) of your loans as compared with the interest rate to give you a new fair interest rate.

Example: Borrower has a balance of 0,000 on their federal student loans that is split into two different loans.

This site does not negotiate, adjust or settle debts.

All federal student borrowers are able and encouraged to apply for any federal repayment or forgiveness programs through the US Department of Education without paying fees to any entity.

The loan types which qualify for a consolidation are: Generally, you can apply for a consolidation once you have graduated from school, or have left school, or have dropped below 6 credits per semester.

Your student loans would need to show that they are not in “FULL TIME” status, and must be in repayment.

As you can see from this example, the borrower had not one but two interest rates which have now been combined into one interest rate that takes the balance(s) of the loan into consideration when calculating the new and fair weighted average interest rate.