Student Loan FAQs — Federal vs Private, Consolidation, and Blended Rates

Federal student loan rates are set by Congress each year and fixed for the life of the loan. For 2024–25: undergraduate Direct Loans at 6.53%, graduate Direct Loans at 8.08%, PLUS Loans at 9.08%. Private loan rates are set by lenders based on your credit score and can be fixed or variable — they range from roughly 4% to 16%+

Your blended rate is the weighted average across all your student loans. Multiply each loan's balance by its rate, sum the results, and divide by your total balance. This tells you the single rate a consolidation or refinance must beat to save you money.

Federal Direct Consolidation combines multiple federal loans into one at the weighted average rate (rounded up to the nearest 0.125%). It preserves access to income-driven repayment and forgiveness programs. Private refinancing replaces federal loans with a private loan — often at a lower rate, but you permanently lose federal protections.

Refinancing makes sense if you have stable high income, good credit (720+), and private loans or federal loans you no longer need IDR or forgiveness programs for. Never refinance federal loans into private if you are pursuing PSLF or income-driven forgiveness.

Yes — and in the same way as other loans. A large federal loan at 6.53% will have much more weight on your blended rate than a small private loan at 8%. The blended rate reflects balance weighting, not loan count.

The main calculator handles up to four loans. If you have more, group your two smallest-balance loans together using a weighted average of their rates as an approximation, then enter that combined tranche.