11.04.09 | My Grace is Almost Up, When Should I Consolidate?
Ah yes, the dreaded panic button has officially been pressed. Those of you who graduated in May are now approaching repayment at mach one speed. Yikes! I think I can hear your heart pounding out of your chest from here. Ok, fear not – this can still work, but you’ll need to get started right away. Once you START the consolidation process your application is date stamped on that date which is mundo important because you want to consolidate your loans before your grace period expires.
If you have any federal loans which were disbursed prior to July 1, 2006 that have not previously been consolidated it is important to consolidate your federal loans ASAP! The reason being is because the rates on those loans will jump from 1.88% to 2.48% after your grace period expires.
If all of your loans were dispersed AFTER 7/1/06 then you can take a deep breath. Your loans are already fixed and their is no rate benefit to consolidation. Consolidation for you is just about extending your loan terms and minimizing your monthly payment.
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