Ok…loans are consolidated about $27K worth at a crap rate of 8.75 done back in 96. I know I can’t re-consolidate the current loans. However, I was thinking about going back to school and taking out another loan. If I was do to this, could I then re-consolidate all of mine loans at a new lower rate? Or would just my new ones be at a lower rate?

Thanks.

You can reconsolidate, but the entire amount will be the weighted average of the rates for all consolidated loans. So, if you take out $10K at 4% and consolidate with the old loans, then you'll have a $37K consolidated loan at (27*8.6%+$10K*4.0%)/37K or, about 7.4%.

So, no, it doesn't really help to take out new loans just to reconsolidate.