11.28.06 | Why consolidate during your Grace Period???
Whether you are a recent grad, or graduating this year, it is important to know when your grace period begins and ends. Typically upon graduating your grace period starts right away and lasts for six months. During this time you do not have to start paying back your loans which makes it a good time to shop around and start thinking about cosolidating.
Consolidating during your grace rate is beneficial for a couple of reasons. First, if you consolidate during your grace period you can lock into a lower fixed rate as opposed to waiting until they go into repayment. The interest rates are fixed by the federal government so you are always guaranteed the going rates. For example, the 2006 grace rate is 6.54% and the repayment rate is 7.14%. That statistic alone should be reason enough on why it is a good idea to consolidate as soon as possible. Second, since you are not obligated to make payments on your loans until your grace period ends, you don’t have to worry about putting them on a temp. forbearance while consolidating. This gives you the freedom to take your time and find the right company for you. A company that I found very imformative was www.studentloanconsolidator.com This site is full of information and has an easy online application process. Also, just remember that the rates change every July 1st so if you wait to long you may miss out on getting a low fixed rate. Just last year the rate increased from 4.7% to 6.54% for those consolidating during their grace period. If you are looking for more information on Consolidation or federal loans in general check out some of the sites listed below.