Student Loans- Can you re-consolidate?

[SummerBaby]

I saw the thread below and I'm wondering if you can consolidate now, if you've consolidated in the past. There used to be some (expletive deleted) rule that stated you can only consolidate once during the life of the loan, which meant that people like me, who consolidated in the 1990s before the interest rates fell, are now paying ridiculous rates. This (expletive deleted) rule also makes student loans the only type of loan you can't refinance to get a better rate. This topic always makes me crazy....

I know that Congress was considering changing this rule- anyone have any idea?

Val
Mom to Madeline
7/28/04

[tarahsolazy]

As far as I know, the rule still stands, and you can only consolidate once, and cannot refinance. I did mine a few years ago and ended up fixed at 5%, which I'm OK with. Not a lot of other places you can have that kind of debt (med school) for that low interest. Still sucks though.

[Puddy73]

I don't think so, unless you go back to school. If you still qualify for financial aid, I think that you can enroll in one class, take a loan for the tuition, and then re-consolidate. That's the only legal loophole that I've heard of.

Jennifer
Mommy to Annabelle 9/03 & a little pumpkin due 10/05

"Life is not measured by the number of breaths we take, but by the moments that take our breath away."

[SummerBaby]

I confirmed it does apply. Ugh. I'm variable, capped at 8.25%. I guess I'm off to the bitching post!

Val
Mom to Madeline
7/28/04

[NancyJ_redo]

I believe that if you previously consolidated but are at a variable rate, then you can consolidate again. If it's a fixed rate, then no additional consolidations. I'm in the first camp - consolidated but at a variable rate, so am about to consolidate again (consolidating DH's loans with mine).

The bill that you mentioned regarding removing the restiction on re-consolidating fixed rate loans is still pending right now.

Btw, I recommend you call the US Dept of Education re your question to really confirm, bc if your lender is someone else currently they obviously have an incentive to tell you that you can't consolidate again. The US Dept of Ed is a Federal lender and I've found them to be really helpful.

[brigmaman]

I had consolidated a few years back and then did so again with my dh. Not sure if that is considered reconsolidation or not, though.