Start Consolidating federal graduate loans

Consolidating federal graduate loans

Federal consolidation loans can only be used for federal student loans, but private consolidation loans can be used for both federal private student loans.

A weighted average means that the loans with a higher balance influence the interest rate more than loans with a smaller balance – the overall impact of each old loan on the new interest rate is proportional to the comparative balance of that loan.

The following table illustrates how a weighted average works.

In this example, there are three students that each have three loans.

The interest rate is primarily determined by the lender’s evaluation of the borrower’s credit history.