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consolidated 2006, consolidate rest?

Discussion in 'Financial Aid' started by swimguy23, May 16, 2007.

  1. swimguy23

    swimguy23 New Member 5+ Year Member

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    Oct 8, 2005
    As a long time lurker of the forum, maybe it's about time i start a thread :)

    Anyways, I consolidated my federal loans in 2006 (consisting of a few minimal loans from university and med school loans) at 2.875%

    Since then I have another $27,750 in federal loans currently between 6.5-6.8%

    Basically my question is can I further consolidate those in higher interest rate separate from the original consolidation at the real low interest rate? Or, if I consolidate those at the higher interest rate would I have to include the lower interest rate ones and then kind of screw myself over because that interest rate would increase?

    I have read a lot about this but am having a hard time finding specific information and I haven't had the time yet to call a lender
     
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  3. dpmd

    dpmd Relaxing Physician 10+ Year Member

    16,817
    22,462
    Sep 14, 2006
    Lazytown
    As long as you have loans that funded after the date your original consolidation funded, you should be able to consolidate them separately (I did, but I had two different lenders, so maybe that is also a requirement). I crunched the numbers a few times to make sure this was the best way to go (with the intent to pay off the higher interest rate loans first). The consolidation guy tried over and over to convince me to include them all, and tried to "explain" to me why (I guess I could have gone elsewhere, but I like the service I have gotten with them for other things, so I let it slide). My interest rate ended up being a half a point less than what it was (and less than it would have been had I gone into repayment). You don't have to worry about doing it too soon, you just want to make sure you are still in grace, and that you do it before your variable rate changes (assuming it goes up this year, which is likely). PM me if you have any questions or if your lender gives you a hard time and you want to try mine.
     
  4. okbye

    okbye 2+ Year Member

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    Apr 13, 2007
    Next years interest rate will be announced at the end of the month but we're only expecting a minimal increase, like .25%. It won't go into effect until July 1st so you have the whole month of June to get a consolidation application in if you want to wait and see what happens. You don't need different lenders anymore, that rule was repealed last year.

    If your previously consolidated, low interest loan is quite a bit higher than the larger interest new loan it could make sense to put them together. Since your new interest rate is a weighted average of the two as long as they higher amount is big enough it could still be in your favor to reconsolidate but you would have to figure it out both ways. If you have the balance of the consolidation loan I could do it for you pretty quickly, our office program does those things pretty easily. If the higher interest balance is equal to or higher than the lower interest balance leave them serarate.
     

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