Q: Is there anyway to consolidate my federal student loans more than once (i.e. essentially re-consolidating your existing federal student consolidation loan)?
A: In most situations the answer is “no”. Once you have consolidated your federal student loans, there are very few exceptions in which you will be eligible to reconsolidate. If you already have a federal consolidation loan with either Direct or FFEL, you will not be able to reconsolidate that loan with either program, unless you meet one of the following requirements (and this still may not a guarantee a reconsolidation opportunity):
1. Reconsolidating is allowed if it is necessary to participate in the Direct Loan public service forgiveness program.
2. If you have an eligible federal student loan that was not included in the first federal consolidation loan, then you may be able to obtain a new federal consolidation loan to include that loan. The eligible federal loan in question could be a new federal student loan (acquired after the initial consolidation loan), or it may be another consolidation loan.
3. For FFEL consolidation loan borrowers, if the loan is in default and if you agree to repay the loan under Income Based Repayment / Income Contingent Repayment plan, you may be able to obtain a new Direct consolidation loan.
4. If you are a Military service member, you are allowed to re-consolidate your federal consolidation loan in order to take advantage of the new limits on interest accrual for Direct Loans.
If you feel that one of the above circumstances applies to you, contact your lender for more information regarding your specific federal reconsolidation situation. For borrowers who have yet to consolidate their student loans, before making a decision to consolidate your student loans, do your research. Choose from some of our most popular student loan consolidation topics:
Student Loan Consolidation 101: Easy Tips for Beginners
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Consolidate Private Student Loans
Compare Student Loan Consolidation
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