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| Consolidated Student Loan |
Question:
I graduated from college in 1996.
Soon after I consolidated my - student
loan at a 9% interest rate (scary).
Everthing I read lately - is about
consolidating student loans at 4%
interest the lowest - they've been.
Does anyone have any advice/experience
with taking out - a small loan to
attend a local community college for
a semester and - consolidating it
with your other big loan. Would this
work?, or is - this just a pipe dream
I have to reduce my overall interest
rate? Any - help at all would be appreciated.
Answer:
My understanding is that once consolidated,
one cannot re-consolidate the same
loan. Yes, if you have a new loan
that was not included in the previous
consolidation loan then you can do
a new consolidation loan. However,
remember that the interest rate is
a weighted average rounded up to the
nearest 1/8 percent. So, your new
loan would have to be large enough
to reduced the current interest rate.
The small loan you mention, was the
new consolidation loan is done, may
even result in a higher interest rate
then what you have now.
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