10.27.09 | Consolidation Offers Hold for Grace Option
Did you know when you consolidate your loans early, meaning right after you graduate, you do not necessarily need to begin the repayment process immediately? You can elect to do a “Hold for Grace.”
A hold for grace option allows you to file your consolidation application right after you graduate college while allowing you to still enjoy your full six month grace period. The other option, assuming you would like to fully utilize your six months, is to just file your consolidation application near the end of your grace. The consolidation process generally takes 30-60 days.
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Filed under: Loan Consolidation
Hi Chris et al:
Although “hold for grace” is an attractive option up front, it is not necessarily helpful whatsoever for those students who are intending to consolidate and go into IBR. This is because one can’t go into IBR directly from consolidation. Rather, another payment program must first be selected! So, the grace period would ideally be used to undergo and COMPLETE consolidation so that upon the start of repayment, the IBR application process can well be underway. Both processes can take months, so I hear. Just an FYI in doing my research. Let me know if you find anything out differently. Thanks.
November 12th, 2009 | #