Loan Question

[agdoc04]

If you have Federal loans out consolidated at 6.5%, can you take out another federal loan and put it all into the loan at 6.5%?
For example.
60,000 in loans at 6.5% consolidated
25, 000 at 4.5% not consolidated

Can you borrow 30,000 (for the sake of example) at the current rate (which I assume is very low) to pay towards the 60,000?

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[yadayadadude]

which I assume is very low

Why would you assume that? Federal student loan rates are fixed.

 

[HomerSD]

Why would you assume that? Federal student loan rates are fixed.

.

Yada is right, stafford loans disbursed after June 30 2006 have been fixed rate loans. The current rate is 6.8%, dropping to 6.0% later this year if it is a subsidized stafford loan. To answer your first question: Yes, you can re-consolidate your federal loans if you have an additional eligible federal loans. The new interest rate will be a weighted average of the loans in the new consolidation. Unless you have a second federal loan with a lower interest rate of 6.5%, it makes no sense to re-consolidate.

See:
Rate calculation and re-consolidation

Stafford Loan Rates

 

[yaah]

Moving this to financial aid forum, will probably get better advice there

 

[yadayadadude]

.The current rate is 6.8%, dropping to 6.0% later this year if it is a subsidized stafford loan.

I thought the rate decreases only applied to undergraduates?

 

[Doctor Bagel]

I thought the rate decreases only applied to undergraduates?

You're right.

 

[RockfordWF]

If you have Federal loans out consolidated at 6.5%, can you take out another federal loan and put it all into the loan at 6.5%?
For example.
60,000 in loans at 6.5% consolidated
25, 000 at 4.5% not consolidated

Can you borrow 30,000 (for the sake of example) at the current rate (which I assume is very low) to pay towards the 60,000?

There is NO REASON to consolidate any loans that don't have duplicate interest rates.

This an old methodology that has ceased to be beneficial since all of the rates have become fixed....