WASHINGTON — The quandary of whether students and their parents should consolidate student loans comes around every year.

This year the answer is fairly easy for most borrowers: Yes.

The deadline for consolidating to get the best interest rates is June 30. And you certainly don't want to wait until then.

By law, interest rates on most existing federal student loans are variable and are calculated based on a formula that uses the interest rate of the 91-day Treasury bill set at the last auction in May.

That auction took place on May 31. As a result, the interest rate for the one-year period beginning July 1 will be 6.54 percent for borrowers who are in school or who are in a grace or deferment status. Loans for borrowers in repayment will be set at 7.14 percent.

Although lenders make it seem as if consolidation is a no-brainer, I've received a number of e-mails from parents and students who need a little more clarification.

For example, there's the dad whose daughter told him she can't consolidate because she's in deferment.

Pop, she's wrong.

If you've received an in-school deferment (an authorized time period when your loan payments are not due) you can still consolidate. That doesn't mean you have to repay the loan while you're still in school. You can consolidate while in school and ask for a deferment. The loan payment begins either when you graduate or stop going to school at least part-time.

Oh, and so you know, recent changes in federal legislation will prohibit in-school borrowers from consolidating beginning July 1. This is why if you are in school, you need to beat the June 30 deadline.

I should also note that federal student loans first disbursed on or after July 1 will now have a fixed interest rate of 6.8 percent for the life of the loan. This fixed interest rate will apply to both in-school/grace and repayment periods.

Another reader didn't think he could consolidate because he only has one Stafford loan.

Not true. If you only have one loan and you want to consolidate to take advantage of the lower rate before July 1, you can. However, you have to consolidate with the lender of that single loan. You can't shop around. If you have federal student loans with more than one lender, you can choose to consolidate with any lender.

Hopefully the single-lender rule will be changing soon. Congress is currently considering repealing that anti-competitive statute. The change could become law ahead of the July 1 deadline, according to a spokeswoman for Sallie Mae, one of the country's largest student loan lenders.

And what if you consolidated already?

"My daughter has some student loans as a result of going to law school," one father wrote. "She has told me that she cannot consolidate her loans at this time as she has already done this once. This sounds unusual as people refinance a number of loans more than once. Is it true that students are only allowed to consolidate one time?"

Sorry dad, your daughter is right.

If you've already consolidated your loans, you can't do it again unless you have a new federal student loan or a loan that was not included in the original consolidation. And don't write me about it. Write to Congress to complain about this ridiculous rule.

If you have any more questions, please contact your student loan lender and don't wait until the last minute.