The maximum loan term is 25 years, and your payment amount is based on income, family size, and Direct Loan indebtedness, plus a third amount.
The calculation rounds up the weighted average of those rates to the nearest one-eighth of a percent, but sets the maximum rate at 8.25%.
Note: the weighted average means both the individual interest rates and the amounts of each loan will be included in the averaging process.
Fortunately, the pages linked above for IBR and ICR have calculators, so you do not have to perform the computations on your own.
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If you had any special benefits like a principal rebate attached to your original loan, you will lose those when you consolidate.
Consolidation is final: you can’t reverse your decision at a later time, so consider your circumstances carefully before deciding.
First, there are a lot of myths surrounding what you can or can't do with Parent PLUS Loans, so let's bust those right now.
If you have Parent PLUS Loans, you cannot: If you are on the standard 10-year repayment plan for your Parent PLUS Loan, you are eligible for Public Service Loan Forgiveness (PSLF).
But the Direct Consolidation Loan isn’t limited to PLUS loans.