Current rates for consolidating student loans

During tough economic times, the Federal Reserve and other central banks can lower interest rates.

But if the Fed starts worrying about inflation, policymakers may decide to raise rates to keep prices from rising too sharply.

But by opting for a fixed-rate loan, you might be passing up the chance to start out making lower monthly payments.

Variable rates can either work for you or against you.

Simple daily interest formula: Outstanding principal balance x number of days since last payment Most federal student loans have loan fees that are a percentage of the total loan amount.

The loan fee is deducted proportionately from each loan disbursement you receive.

Learn more about whether refinancing is right for you.

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View the interest rates on federal student loans first disbursed before July 1, 2017.

Refinancing doesn’t guarantee lower payments, but it could help you get a lower interest rate and enable you to pay off your loan faster.

Remember though, refinancing your federal loans could mean giving up your certain borrower benefits like deferment and forbearance, loan forgiveness, and income-driven repayment plans.

For example, borrowers with federal student loans can take advantage of federal income-driven repayment programs, or benefits like loan forgiveness, which borrowers with private student loans typically don’t have access to.

If you can lower your interest rates, more of your money can be used to reduce your debt, instead of paying off only your interest.

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