Friday, 9 October 2009

Student Debt: - Can they be Re-consolidated?

Can student debt be re-consolidated? This is quite a discussion topic these days. But unfortunately, there is no unanimous answer to this question. Considering the flexibility of financial market, re-consolidation might not be a rule but certainly an exception.

Student debt reconsolidation depend a great extent on the type of student debt you have. For federal student loans, re-consolidation is possible but only once with a few exceptions. But for private student debt, there is no restriction on how many times you can consolidate your debt. However, if your objective is to obtain better interest rates or to reduce your monthly payments, then you will experience more limitations even with private student debt.

There are certain circumstances where federal student debt can be re-consolidated more than once. For instance, if you have obtained an additional federal student loan only after any of your earlier student debt consolidation was completed, then you will be able to add the new federal student loan to the previous consolidated federal student debt loan and consolidate it once again.

If for some reason you had to leave a previous loan out of the student debt re-consolidation process but you want to include it later, then you can consolidate your student debt once again by combining the outstanding consolidated student debt loan with the previous unconsolidated federal student loan. However, this is not a common scenario and occurs rarely.

1 comment:

  1. Student loans have become a viable option for all who'd like to pursue high-end courses. Education costs are not allowing our students to live up to their ambitions. Student loans help our youngsters meet their educational goals as well as their demand for modern amenities. They don't think too much about the effects of accumulating student debt (Student Debt - Rising demand for Student Loan).