By consolidating your PLUS loan(s), your interest rate will be fixed and the rate determined by the weighted average of the interest rates on the loan(s) being consolidated, rounded to the nearest higher one-eighth of one percent.

PLUS loans, fully disbursed on or after July 1, 2006, already have a fixed rate of 8.50 percent for those originated with a private lender or 7.90 percent if originated through the Direct Loan Program. If you consolidate one or more loans with a fixed rate of 8.50 percent, your fixed consolidated interest rate will be 8.50 percent. If you consolidte one or more loans with a fixed rate of 7.90 percent your consolidated interest rate will be 8.00 percent. If you consolidate a fixed rate of 7.90 percent with variable rate loans, your fixed consolidated loan rate will be a weighted average of the loans being consolidated.

Please note that if you currently have a borrower benefit on your PLUS loan, such as an interest rate reduction, the reduced interest rate is not used in determining the fixed interest rate of the consolidation loan. So if your current rate is 7.50 percent because of a borrower benefit that the lender is providing, the consolidation interest rate will be 8.50 percent, the current rate for federal PLUS loans originated through private lenders.