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10 Pointers On College Loan Consolidation
By Georgio Heberto, Sat Dec 10th
Should I consolidate my college loans or not? 1. Still in school, yes! Rates are low, but they're scheduled togo up. Your college loan payments will then remain as manageableas possible when you leave school. If you have graduated, orwill be graduating this May or June, yes! Graduates can lock inhistorical low rates, and reduce their monthly payments morethan half. You can lock in a rate even while still in school,and even if you have been out of school for a couple of yearscan get a good deal, too. 2. The newest twist in the consolidation puzzle is the "inschool consolidation", affecting students who are currentlyenrolled and will be enrolled past the July 1 consolidation. Youcan consolidate your existing college loans now to secure thelow rates for at least part of their portfolio.
3. Consolidating could save thousands of dollars in interestpayments on college loans. There are impending ratechanges and new interpretation of regulations by the Departmentof Education, also, Congress is considering ending thefixed-rate program. Experts are urging students to consolidateto relieve themselves of a higher debt load. 4. Many students and families are looking for a simple, clearanswer about whether to consolidate college loans or not. Thesimple answer is to take some of the bite out of the debt byloan consolidation. You could live like a miser and save as muchmoney as possible or consolidate your federal student loans now. 5. For students still in school, you have an opportunity tochoose consolidation. Consolidating would put a college loanborrower into repayment status, but the student can deferpayments until after graduation by making a deferment request.Consolidating today can have payments put off until graduation. 6. The federal loan program allows consolidation, which is whena borrower pools his student debts together so that only onemonthly payment
is necessary, rather than several. It's not justthe convenience of one payment that is making consolidation socompelling. The most significant aspect of the program is thatit allows a person to permanently lock in a lower interest rateon loans. These loans are backed by, or granted directly by, thefederal government. 7. Rates for federal Stafford loans, the most prevalent type ofstudent loan, as well as some other types of federal studentloans are set annually based on the rate of 91-day U.S. Treasurybills at the end of May. The exact rate won't be known until theend of the month, but experts say it will be about 2 percentagepoints higher. (Private loans and federal loans cannot beconsolidated together.) 8. For the first time, the U.S. Department of Education willallow students still in school to consolidate federally backedloans. Federal PLUS loans can also be consolidated. PLUS loansare used to help pay the cost higher education. 9. Students, regardless of enrollment, should absolutelyconsolidate their college loans, arranged through the student'slender. There are no fees, no credit checks, and interest ratesare expected to move higher. Those are good reasons toconsolidate. 10. Act quickly to put lock on current federal-aid interestrates. Graduates should act now to insulate themselves from adrastic rate change. Apply early. Do not wait until the lastminute to file paperwork. Those who have already graduated orleft school should not wait to investigate consolidation. In thefirst six months after graduation, you are in a grace period.Within that six-month window, you can lock in a low rate onStafford loans and spread the repayment over as long as 30years. If you're going to consolidate, now is the best time todo it. About the author:Georgio Heberto is dedicated to offering news, articles, andinstruction on financing college education. You have a definitechoice in how you finance your education and beyond. Visit http://www.atopeducation.com for more information.
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