May Gruaduates – Grace period almost up. Consolidate Now?

Student loan consolidation

So it’s already October and May graduates are about to start paying off their federal student loans. Your grace period is about to end and you are considering all the options available to you. If consolidation is one of your options, I can imagine you going hysterical not knowing if you can still consolidate now that your grace period is almost up.

It is always advisable to consolidate your student loans before the end of your grace period. Doing so gives you certain benefits. For example, if you were given a federal student loan before July 1, 2006, you should consolidate before the end of your grace period. This is because the interest rates on your loans will move up to 2.48% from 1.88% at the end of your grace period.

For those of you who have federal loans that you received after July 1, 2006, you will receive no interest rate benefit for consolidating before your grace period expires. The rates on these loans are fixed and will not change. You only benefit here is the extended time and lower monthly repayments you’ll receive for consolidating.

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