Weighted averaege

[grammers]

Can anyone help me with the math formula for finding the weight average of my loans?

[snowpuppy]

There are several on the web. Key Bank has one and so does Great Lakes. You need the interest rate for each individual loan, the $ amt of the loan and the type of loan such as Stafford, Perkins, etc.

 

Keep in mind if you have Perkins and consolidate them, you lose any forgiveness/cancellation provisions.

[TomKC]

Take the total balance of each loan and multiply it by the interest rate. Add those all up then divide by the total owed for all loans, that gives you the weighted average interest rate.

 

So, if you had three loans where B(x) is the total balance for each loan and I(x) is the interest rate for each loan:

 

(B(1) * I(1) + B(2) * I(2) + B(3) * I(3)) / (B(1) + B(2) + B(3)) = I(weighted average)

[grammers]

Thanks! I knew it wasn't too hard, but I just couldn't seem to get it.