Is it possible to re-finance a consolidated student loan to get a better interest rate?

The interest weight of a consolidation loan is now the weighted average of the interest rates of the loans being consolidated, rounded up to the nearest .25%.

It's not mathmatically possible to get a lower rate with this formula.

In addition to that, federal regulations do not allow each borrower more then one consolidation, except in a few limited circumstances:
- if you have a consolidation loan that has been referred to the guarantor for default prevention, or defaulted, you may be able to consolidate directly with the federal government on an income-contingent-repayment plan.
- Certain public service positions have repayment benefits, and effective 7/1/08, eligible borrowers who already consolidated may re-consolidate with the direct loan program in order to get those benefits.

First answer by Studentloanguy. Last edit by Studentloanguy. Contributor trust: 50 [recommend contributor]. Question popularity: 183 [recommend question]