Student Loan Consolidation Calculator
| Balance | Rate (%) | Payment | |
|---|---|---|---|
Weighted Average Rate:
6.56%
New Interest Rate (%)
New Term (Years)
Consolidate or Keep Separate?
Managing multiple student loans is a headache. But is consolidation mathematically worth it?
Use this tool to calculate your Weighted Average Interest Rate—the only number that matters when comparing against new offers.
How to Use This Calculator
List Your Current Loans
Enter the balance, interest rate, and minimum monthly payment for each of your federal and private student loans.
Input Consolidation Offer
Enter the interest rate and term (e.g., 10, 15, 20 years) from a private lender offer (like SoFi, Earnest, or Laurel Road).
Compare Weighted Rates
Review the 'Effective Interest Rate' comparison. If the new rate is lower than your current 'Weighted Average', you save on interest.
Understanding Student Loan Strategy
Complex debt requires a clear strategy. Know the risks before you sign.
Weighted Average Rate
The one number to rule them all. If your new offer isn't lower than this number, you are mathematically losing money by consolidating.
Federal Protections
WARNING: Moving Federal loans to a private lender strips you of IDR plans and PSLF forgiveness. Proceed with extreme caution.
Lower Pmt vs. Cost
A lower monthly payment often means a longer term. You might feel richer monthly but be poorer long-term due to extra interest.
Consolidation vs. Refi
Federal 'Consolidation' just combines loans (weighted avg rate). Private 'Refinancing' actually gives you a new, hopefully lower, rate.
Explore Other FI Concepts
Debt elimination is a key stage of the FI Journey. Here are tools to help you decide what's next.
Frequently Asked Questions
It is the average of all your interest rates, weighted by each loan's balance. A large loan with a high rate pulls the average up more than a small loan. This is the true 'cost' of your debt portfolio.
Be very careful. Consolidating Federal loans into a private loan is irreversible. You lose access to federal benefits like Income-Driven Repayment (SAVE/PAYE), forgiveness programs (PSLF), and deferment options.
Federal consolidation (Direct Consolidation Loan) does NOT lower your rate; it just takes the weighted average. Private refinancing CAN lower your rate if your credit score has improved since you graduated.