The student loans that you consolidated in 2004 were variable rate stafford loans. You consolidated and locked in the then current weighted average rate of the stafford loans. You may have been offered additional borrower benefits that could reduce that rate further (on time payment discounts or ACH discounts).
Unfortunately, the loans that your wife took out were probably originated after changes in the Higher Education Act that changed stafford loans from variable rate loans to a fixed 6.8%.
You can still consolidate those loans, but now, only with the Department of Education (no more private lending, that is why you don’t see consolidation offers anymore) and you will retain the rate at which they current exist. However, depending on the balance of the loans, you may be able to extend the term to a manageable monthly payment and may be offered an ACH discount. You can also request a special IBR (income based repayment plan) repayment plan that is tiered to allow you to keep making at least your interest payments.
Do whatever you can to stay our of deferment or forbearance as the interest that accrues during these periods capitalizes.
