Congress changes the program from time to time. In 2013, the fixed interest rate was changed to a variable interest rate, but it will still be a lower rate than you can get through a regular bank.
Due to the COVID-19 pandemic, interest rates on federal student loans is temporarily reduced to 0% from March 13 2020 to December 31, 2022. You may choose to temporarily stop making these monthly payments if you wish. In addition, President Biden is proposing new loan repayment plans that will limit the student loan payments based upon income. So before you consolidate loans, you might want to investigate your options depending on the type of loans, particularly for Federal Pell grants and federal student loans.What interest rate can you get? The interest rate on a federal government consolidation loan is based on the weighted average interest rate on the existing student loans, to a maximum of 10%. Your monthly payment will also be lower by extending the repayment period.
Direct Consolidation Loans - Federal student loans consolidation help may be obtained from your local college financial aid office, or from the Federal Direct Consolidation Loans Information Center, if you have loans direct from the government.
Outside Lender FFELP Consolidation Loan - If your loans are through an outside lender, contact your bank or FFELP lender to see if you can consolidate your student loans.