12.20.06 | Consolidation”¦what you need to know
Over the last few weeks, I have noticed an increase in the amount of callers who have been concerned with wether or not to consolidate due to changes in Congress. There seems to be some concern on whether the interest rates will drop this upcoming July. My answer is this”¦If you were lucky enough to fill out an application before the July 1st rate increase then I would say definitely consolidate. Last years rates are 4.7% if you are in your grace period and 5.3% in repayment. If the rates do drop I don’t anticipate them dropping that much.
If you are a recent applicant the interest rates are 6.54 in grace and 7.14 in repayment. By not consolidating your rate is variable and will change this upcoming July. It may seem silly to consolidate if rates are going to drop, but, I would way your options and see which makes the most sense. You should remember that if you don’t consolidate you are paying that variable rate on all your loans which may make the payments tough to manage. Overall it is your call but I would do a little research before making this decision. You can read more about this on www.studentloanconsolidator.com
In conclusion, it is always best to way all your options and make an educated decision. If you would rather talk to a person you can always call the helpful reps. at www.studentloannetwork.com
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