Can an old consolidation loan be included in a new consolidation?
Borrowers can consolidate multiple times, so long as each new consolidation loan includes at least one loan that was not consolidated before. However, reconsolidation does not allow one to relock the interest rate on an existing consolidation loan. Once the interest rate on a consolidation loan is fixed, it does not change. Remember that if you decide to include an old consolidation loan in a new consolidation loan, you will lose the fixed interest rate of the old loan and gain a new interest rate which is the weighted average of the rates of the federal student loans that you consolidate, rounded up to the nearest 1/8% and capped at 8.25%. For the best input on this decision, call your current lender(s) and ask them to calculate the combined interest rate and the separate interest rates so that you can make the best informed decision. Back to top Compare borrower benefits: Many lenders offer extra loan benefits to borrowers in the Federal Stafford Loan program and these benefits are l
