Reconsolidation

[aredoubleyou]

When you have already consolidated your loans (last year) and you consolidate again, do consolidate last years consolidated loan PLUS this year's loans, OR do you just consolidate this year's loans? Is one way better than the other??

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[OSUdoc08]

When you have already consolidated your loans (last year) and you consolidate again, do consolidate last years consolidated loan PLUS this year's loans, OR do you just consolidate this year's loans? Is one way better than the other??

Only consolidate the new loans. You will have defeated the purpose of consolidating the prior loans, since they will ALL jump up to the current interest rate.

 

[angel80]

Only consolidate the new loans. You will have defeated the purpose of consolidating the prior loans, since they will ALL jump up to the current interest rate.

That's not true. If you've consolidated previously, and wish to consolidate your new loan with those, they will give you a weighted average for your interest rate (my interest rate is 3.5%).

 

[OSUdoc08]

That's not true. If you've consolidated previously, and wish to consolidate your new loan with those, they will give you a weighted average for your interest rate (my interest rate is 3.5%).

It's still higher than the previous rate.

There is no point in doing this while in school.

You can reconsolidate everything after you are done.

 

[aquaboy]

It's still higher than the previous rate.

There is no point in doing this while in school.

You can reconsolidate everything after you are done.

It does make sense for some to reconsolidate if they can get better incentives. For example I had consolidated with Direct Loans which had no repayment incentives and I have now rolled everything together with B of A which puts my combined rate at 3.65 which can go to 2.4 after 36 ontime payments.

 

[OSUdoc08]

It does make sense for some to reconsolidate if they can get better incentives. For example I had consolidated with Direct Loans which had no repayment incentives and I have now rolled everything together with B of A which puts my combined rate at 3.65 which can go to 2.4 after 36 ontime payments.

I agree that if you consolidated with the wrong company, it makes sense to consolidate again with a better one. I find the best company (with the best incentives) to be Total Higher Education. (T.H.E.).

However, for the majority of people, who plan to consolidate with the same company as before, they should leave the previously consolidated loans alone while in school.