Interest rates: The interest rate of your consolidated federal student loans will be a weighted average of your previous rates, rounded up to the next 1/8 of 1%.
It won’t be determined by your financial history, as it would be if you refinanced.
You can apply for a direct consolidation loan online at You’ll also lose forgiveness benefits specific to Perkins loans if you consolidate them.Consider keeping those separate when you consolidate if you plan to take advantage of Perkins loan cancellation.Benefits: Consolidating some types of loans, like those from the Federal Family Education Loan Program, makes them eligible for certain benefits.
These can include income-driven repayment, which ties your loan payments to your earnings and forgives your federal loan balance after 20 or 25 years, and Public Service Loan Forgiveness.
It’s always free to consolidate your loans with the government on