Search unanswered questions...
Enter a question here...

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

[Edit]
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.

Improve Answer Discuss the question "Is it possible to re-finance a consolidated student loan to get a better interest rate?" Watch Question

First answer by Cicily. Last edit by Studentloanguy. Contributor trust: 40 [recommend contributor]. Question popularity: 180 [recommend question]

Also see on Answers.com

Research your answer:

Answers.com > Wiki Answers > Categories > Business and Finance > Personal Finance > Money Management > Loans > Student Loans and Financial Aid > Is it possible to re-finance a consolidated student loan to get a better interest rate?