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If you have one or more federal loans, you may consolidate them through the Federal Direct Consolidation Loan Program. There are advantages and disadvantages to loan consolidation, so consider your options carefully. Federal Student Aid provides information on the and how to apply.

Weighted Average Interest Rate

The interest rate is the weighted average of the interest rates for all loans being consolidated, rounded to the next higher one-eighth of one percent. This rate will not exceed 8.25 percent. To calculate a borrower's weighted average interest rate, use the interactive Direct Consolidation Loan Calculator.

Student borrowers who consolidate education loans before July 1 (when interest rates are expected to change), may lock in a weighted average based on their current interest rate.

Flexible Repayment Options

A Direct Consolidation Loan offers borrowers four convenient and hassle-free ways to repay their loans. These options are flexible to meet the different and changing needs of borrowers. Only Direct Consolidation Loans offer the Income Contingent Payment option.