Consolidated Student Loan
I graduated from college in 1996. Soon after I consolidated my
student loan at a 9% interest rate (scary). Everthing I read lately
is about consolidating student loans at 4% interest...the lowest
they've been. Does anyone have any advice/experience with taking out
a small loan to attend a local community college for a semester and
consolidating it with your other big loan. Would this work?, or is
this just a pipe dream I have to reduce my overall interest rate? Any
help at all would be appreciated.
- My understanding is that once consolidated, one cannot re-consolidate
the same loan.
- Yes, if you have a new loan that was not included in the previous
consolidation loan then you can do a new consolidation loan. However,
remember that the interest rate is a weighted average rounded up to the
nearest 1/8 percent. So, your new loan would have to be large enough to
reduced the current interest rate. The small loan you mention, was the new
consolidation loan is done, may even result in a higher interest rate then
what you have now.