Watcharu Finance

Student Loan Consolidation Calculator

Consolidating federal student loans doesn't lower your rate — it sets a new one from the weighted average of what you already owe, rounded up to the nearest eighth of a point, and lets you pick a single new term.

6.13% New weighted-average rate

New monthly payment
$223.30
Combined balance
$20,000
Total interest over the new term
$6,796

How it works

Each loan's balance and rate combine into one balance-weighted average, then round up to the nearest 1/8 of a percentage point — the same rule the Department of Education uses for a Direct Consolidation Loan. That rate applies to the full combined balance over the term you choose.

Frequently asked questions

Does consolidating lower my interest rate?
No — the new rate is a weighted average of your existing rates, rounded up to the nearest 1/8 point, so it's never lower than your lowest-rate loan and can land close to your highest. Consolidation's benefit is combining multiple payments into one and choosing a new term, not a rate discount.
Does a longer term save money?
A longer term lowers the monthly payment but increases total interest, since the balance accrues interest for more months. A shorter term does the opposite. Try a few terms here to see the trade-off on your own balances.
Can I consolidate private student loans this way?
This rounds up to the nearest 1/8 point specifically because that's the federal Direct Consolidation Loan rule. Private lenders set their own consolidation or refinance rates based on your credit, which this weighted-average math doesn't model — get a quote directly from a private lender for that path.
What happens to loan benefits when I consolidate federal loans?
Consolidating can reset progress toward income-driven repayment forgiveness and combines loans that may have had different repayment plans into one plan. Check current federal guidance before consolidating loans already making progress toward forgiveness.

Learn more: Student loan types and repayment plans — Subsidized vs. unsubsidized loans, what the grace period and capitalized interest actually do to your balance, standard vs. income-driven repayment, PSLF, and when consolidating a loan helps or hurts.

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