Consolidation may have saved borrowers money in the past, but it no longer does so.Federal education loans made before July 1, 2006 had variable interest rates.

For example, Stafford loan borrowers in 2005 could consolidate their loans during the in-school or grace periods to lock in an interest rate of 2.875%, much lower than the 8.25% cap on the variable interest rates.

But federal education loans made on or after July 1, 2006 have had fixed interest rates.

There is no longer any opportunity to use consolidation to lock in an interest rate, since the interest rates on these loans are already fixed.

The fixed interest rate on the unsubsidized Stafford loan since July 1, 2006 is 6.8%.

I have a question concerning consolidating my federal loans.

I have some that are subsidized and some that are unsubsidized. I have graduated from college and will soon be starting to pay back my loans.My unsubsidized loans are at 6.8% and subsidized are at 5.5%.I also have many Consolidating your federal student loans may streamline repayment by replacing several loans with a single loan and a single monthly payment, but it will not save you money.The fixed interest rate on the subsidized Stafford loan depends on the academic year in which the loan was originated, with loans made in 2006--08 at 6.8%, in 2008-09 at 6.0%, in 2009-10 at 5.6%, in 2010-11 at 4.5% and in 2011-12 at 3.4%.(New subsidized Stafford loans in 2012-13 and subsequent years will be at 6.8%.) Your subsidized Stafford loans are probably at either 5.6% or 4.5%, not 5.5%.A federal consolidation loan has a fixed interest rate that is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8th of a point.