Consolidation Rates, Fees, & Terms

Here we'll tell you about all the important fine print of federal student loan consolidation. We'll discuss the rates, fees, and terms of federal student loan consolidation.

Rates

Federal student loan consolidation interest rates are determined by taking a weighted average of the rates of your eligible federal student loans. This number is then rounded up to the nearest eighth of a percent, with a maximum rate of 8.25%. Your federal student loan consolidation rate is fixed, meaning it will remain the same for the life of the consolidation loan. Though the government imposes a maximum interest rate for federal student loan consolidation, there is no minimum. Thus, the interest rates charged can vary slightly from lender to lender.

Fees

By law, lenders are prohibited from charging any fees for federal student loan consolidation. You will not have to pay an application fee, origination fee, or any prepayment penalties on your consolidation loan.

Terms

We allow our borrowers up to 30 years to repay their consolidation loan, but this will depend on the outstanding balance of their student loans. Keep in mind that, while extending your repayment period will lower your monthly payments, you will end up paying more interest expense over time. However, because federal student loan consolidation has no prepayment penalties, you can always extend your repayment period and then accelerate your payment schedule later without incurring any charges. Here are our maximum repayment terms according to the amount of outstanding debt:

• $20,000-$39,999: 20 years
• $40,000-$59,999: 25 years
• $60,000+: 30 years

If you have any questions about student loan consolidation, please visit our Frequently Asked Questions page.