Consolidating While in Graduate School

Dear American Student Assistance:

I am attending school full time for my doctorate and I am using student loans to pay for some of my education. I have outstanding student loans from my undergraduate and graduate program too. Can I consolidate my current student loans even though I am still in school and not paying back the student loans at this time? Can student loans be consolidated more than once?

Thanks,
Judi

Hi Judi:

Yes, you can consolidate you undergrad loans with your graduate loans; however, unless they are loans from the William D. Ford Direct Loan Program, you will have to wait until you are out of school. Student loans can only be consolidated once, unless you take out new loans after the first consolidation and want to add them. 

The interest rate gets a bit complicated at that point and the borrower often doesn’t achieve what they are trying to (which is to lower the rate) so try to stay put until either the rates threaten to go up or until you finish school.

Regards,
American Student Assistance

loan_consolidation

For some borrowers, consolidating student loans might be a good option. Others might be better off choosing a different repayment schedule. To decide what’s best for you, first understand consolidation and your options.