Loan consolidation with variable rate loans

[Mutterkuchen]

Question for anyone in the know. I have some variable rate loans, Stafford, which I got prior to July 1, 2006 which are currently in grace period at 3.61% interest rate. I obviously want to consolidate those (Direct Government Consolidation seems like it is the only available choice).

If I get an economic hardship deferrment now, can I reconsolidate at 3.61 in June of 2009. Or should I consolidate now to keep my 3.61 interest rate. I want to consolidate at the lower in-school/grace/deferment rate obviously, not in the repayment rate of 4.21%.

Anyone know the answer to this?

Thanks.

[dragonfly99]

Why don't you ask the financial aid folks at your medical school? They should be able to answer that question. They get paid to answer those types of questions and it's their job.

My understanding was that when you consolidate, you consolidate at whatever the going rate is (currently). I'm confused as to why you have 3.61% right now but you already know it's going to increase/go up later? I probably don't understand what type of loan you have.

I consolidated right when I graduated from med school, and locked in a 2.98%, which was the going rate at that time. The 3.61% sounds like a good rate...if you can consolidate at that interest rate I would probably go for it...the economy is unstable right now and I'd be afraid that interest rates are on their way up...but that's just my unscientific opinion.