Consolidate My Federal Student Loans More Than Once

Q: Is there anyway to consolidate my federal student loans more than once, essentially I want to re-consolidate my existing federal student consolidation loan, just wondering if this is possible to do?

A: In most situations the answer is “no”. Once you have consolidated your federal student loans, there are very few exceptions in which you would be eligible to reconsolidate the loan. 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. It is needed for participation in the Direct Loan Public Service Forgiveness Program.

Reconsolidating your federal consolidation loan may be allowed if it is necessary in order for you to participate in the Direct Loan public service forgiveness program.

2. You have an eligible loan that was not included in the original consolidation loan.

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. You are a FFEL consolidation Borrower in default.

For FFEL consolidation loan borrowers, if the loan is in default and if you agree to repay the loan under the Income Based Repayment or Income Contingent Repayment plan, you may be able to obtain a new Direct consolidation loan.

4. You are a military service member.

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. We have a vast section on student loan consolidation available here on CollegeWhale, which can help you learn about student loan consolidation and answer any questions you may have on the topic of student loan consolidation.