Consolidating your federal loans through the Department of Education is free; steer clear of companies that charge fees to consolidate them for you. When you consolidate federal loans, your new fixed interest rate will be the weighted average of your previous rates, rounded up to the next ⅛ of 1%.
Moreover, can my student loans be forgiven if I consolidate?
If you’re paying your current loans under an income-driven repayment plan, or if you’ve made qualifying payments toward Public Service Loan Forgiveness, consolidating your current loans will cause you to lose credit for any payments made toward income-driven repayment plan forgiveness or PSLF.
Then, does credit consolidation ruin your credit?
Debt consolidation loans can hurt your credit, but it’s only temporary. When consolidating debt, your credit is checked, which can lower your credit score. Consolidating multiple accounts into one loan can also lower your credit utilization ratio, which can also hurt your score.