2006-06-20 12:45:08 · 12 answers · asked by eandjgobills 1 in Education & Reference ➔ Financial Aid
Assuming you mean federal student loans like Stafford, Perkins, and PLUS... No.
Federal loan borrowers are not meant to be able to consolidate the same loans more than once. If you already have a consolidation loan, the only way you would be able to "reconsolidate" is if you have borrowed other federal student loans ...but even then, your rate would become a "weighted average" of the old rate and the new rate.
According to federal regs, one way that a student can supposedly reconsolidate is if s/he "have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to [them]." In this scenario, you could obtain a Direct Consolidation Loan, which is the other type of student loan consolidation that the federal government offers. This might be your best option. Just make sure that your current loan is a Federal Consolidation Loan (if it's already a Direct Consolidation Loan, you're out of luck). If it is, check the Dept. of Ed's website to see if you are eligible: http://loanconsolidation.ed.gov/borrower/beligible.shtml . There's no credit check on these loans, so it can't hurt to try!
There are private companies out there that claim to be able to "reconsolidate" any federal consolidation loan. These companies are SO disreputable that I hesitate to even mention them. DON'T DO IT. They're in business only to make money off of you. Many of them don't even deal in Federal Consolidation Loans, so you could end up with a "reconsolidated" private loan with horrible terms and none of the benefits and security of the Federal student loan that you started with.
2006-06-20 12:48:21 · answer #1 · answered by FinAidGrrl 5 · 0⤊ 0⤋
Coming from a person who has worked in a fin aid office, the most hated office in any university; you can reconsolidate a loan as long as at least one loan in the new loan is unconsolidated. Remember that you cannot lock-in another interest rate on a consolidated loan, once its fixed, its fixed. Also remember that you are invariably paying more interest in the long run by consolidated, which in essense is extending the life of a loan. Finally, remember that there is a huge difference in consolidating a loan and getting a new loan to pay off an old one; these two are usually wrongly lumped into one.
Even though I may be right, I may also be wrong. Always consult your lender when it comes to your student loans, or at least the loan coordinator at your fin aid office who can redirect you. There are also many programs that you could qualify for that will forgive the loan, like for teachers and government employees.
2006-06-20 13:00:03 · answer #2 · answered by had438 3 · 1⤊ 0⤋
I had the same idea as you to consolidate my loans for a better interest rate. Unfortunately, you can't. Once you consolidated a group of loans, you can't do it again even if the new lender offers a lower interest rate.
2006-06-20 13:12:14 · answer #3 · answered by What the...?!? 6 · 0⤊ 0⤋
'Consolidate' means to bring together. No you would not be able to consolidate more than once unless you had more to add in. However, you would be able to refinance. And, please make sure that you pay them off. This is the number one deficit of the United States. The Department of Education can't even put a number on the dollar amount that is owed. All loans are 'guaranteed' by the government. Basically, if you don't pay the bank, the state pays them. Then if you don't pay the state, the Federal Government pays the states. If you took out the loans directly from the school and you don't pay them, the Federal Government steps in and pays them off. Then the government tries to collect against you. Who are the biggest owers and the most delinquent? Our great governors, senators, doctors, and lawyers. Look it up yourself if you don't believe it. Please pay those loans off. This is why this mother of 8 boys has to pay so much in taxes out of each check and why the government can't put more money into anything else like Social Security and our own poor here in America.
2006-06-20 12:57:11 · answer #4 · answered by Anonymous · 0⤊ 0⤋
The only way to reconsolidate a student loan is if you have borrowed new loans after the original consolidation. You cannot just reconsolidate an already consolidated loan.
2006-06-21 05:17:00 · answer #5 · answered by JRM 5 · 0⤊ 0⤋
....interesting. I don't think you can consolidate more than once with a single lender, although others may be willing to do this for you.
You may wish to pay off the student loans using a lower-rate mechanism, ie a zero-percent credit card (if you have the cash flow to make payments on time, and you pay down only as much as you can pay off in the zero-percent period) or a HELOC.
2006-06-21 08:16:08 · answer #6 · answered by Veritatum17 6 · 0⤊ 0⤋
Nope, so you can do it only once with stafford government loans. So what for a recession and the FED to lower interest rates to bolster the economy and then consolidate.
2006-06-20 17:36:10 · answer #7 · answered by Anonymous · 0⤊ 0⤋
1
2017-02-09 06:32:09 · answer #8 · answered by Jeffrey 4 · 0⤊ 0⤋
I can't see why not, but you might want to talk to a loan officer.
2006-06-20 12:48:40 · answer #9 · answered by Jules 6 · 0⤊ 0⤋
Yes, just make sure there is no penelty for removing the loan as is from the institute where it now is.
2006-06-20 12:51:13 · answer #10 · answered by dagomithost 3 · 0⤊ 0⤋