Can I reconsolidate my student loans to get a lower interest rate

Unless you have an additional loan to consolidate them with, you cannot consolidate again. Plus your new interest rate would be a weighted average of what you currently have.

If lets say the economy starts to get really bad and interest rates start to go really low, couldn't I do the same thing by finding a financial institution whose willing to loan me 32k for, let's say, 5% (I have really good credit) instead of my 6.88%?

Couldn't I use that to pay off my student loan, and then make payments to this other institution?

I guess what I'm saying is, since IR is generally tied to the market, if it goes really low, wouldn't someone else eventually offer me a better deal?

I'm just trying to understand my options and how it all works, so I really appreciate it.

In all reality, getting a $32k unsecured loan is next to impossible even in a good economy with good credit.

I am not the expert, but I do think that if there is a huge discrepancy between the current student loan consolidation rate and a large loan I'm paying, there's gotta be a way to refinance it, like refinancing homes when interest rates were really low earlier in the decade.

Right now there is not. Sorry.

Well... I didn't mean right now right now, may be when interest rates get really low.

Thank for the response. At least now I know it is not an option most people can take. I appreciate it.

Interest rates were low a few years back and they didnt offer anything then.

When interest rates get really low, it means that the ecenomy is in terrible shape. At that point, no one wants to lend money period. Think about it - banks are in the business of making money by charging interest on the loans they make. Unless you have stellar credit, the risk of you defaulting on a loan is much greater than the money they could make by giving you a loan with a low interest rate. At this point, the banks would much rather hold on to their money. This is what credit freeze is all about.

I am in a similar predicament, but my loans are over 100k and I have a 7 3/4 interest rate and have paid over $55,000 in interest alone. With all of the incentives the government is giving to bail people out, are they are offering anything to those of us in dire straits because of our student loans?

It is absolutely criminal what our lawmakers have done to student borrowers of the 1990s era. Consolidating a student loan for 8.25% sounded like a great deal in 1995 and now students who happen to consolidate at today's rate are benefiting with consolidation loans as low as 2%. The irony is the federal government subsidizes these loans, which means the taxpayers are funding it themselves, and paying back themselves at a higher rate than others. It is patently unfair and changes to the law should be made. Soaplady it should not be considered as an unsecured loan since the loan is made by the government and must be repaid. You can stop paying an unsecured loan, declare bankruptcy and start over, while federal loans and the obligations they entail remain. It is illegal not to repay these loans. Just ask someone who has defaulted against Sallie Mae or the IRS.

I hope all of you will log on to "reducetherate.org" and sign the petition to get this abuse stopped. With any other loan, if a better rate comes along, you can take advantage of it. Not with student loans. You are stuck with it. I pay $845/mo on a $99,000 loan. This has to stop. Please all of you go to the website and sign the petition. Perhaps Obama will do the right thing.

It is not quite that simple with other loans. Take a mortgage...you have to qualify for that refi and then you have to pay closing costs and other expenses.

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Hey Soap Lady - Affordable for who? I can't afford to pay almost $600/month on a loan (this barely makes a dent with the interest).

Why are you trolling the boards and responding to a thread that's been inactive for over 2 years?

And the answer to your question is, "affordable for everyone."

That's the goal and, they do a pretty good job of making it work.

The short answer is, don't borrow beyond your means. Work part time while you're still going to school and make payments before you're "required" to do so. That way, you won't have such a heavy burden once you've graduated.

It's pretty simple. And, I'd think someone with a college education should be able to figure that out :)

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