| Getting through school is a worthwhile accomplishment. | | | | payments are not due as long as you are going to |
| You start a new life, hopefully launch into a new | | | | school half time or more. After you consolidate, |
| career, and have to start paying those college bills. By | | | | however, monthly payments for private college loans |
| consolidating your student loans into a single payment, | | | | are due each month - and they cannot be reversed. |
| you can take advantage of lower monthly payments | | | | COUNT THE COST OF ALL BENEFITS |
| and possibly receive a longer repayment term. Here | | | | The benefits that you receive from the new lender |
| are some tips on how to consolidate your college | | | | may be different than the benefits you have now. Be |
| loans to enable you to manage your debts better and | | | | sure to understand what privileges and requirements |
| enjoy life more while you are doing so. | | | | will apply to your new loan once you consolidate. After |
| CHECK FOR BEST INTEREST RATE POSSIBLE | | | | you sign - you are stuck with whatever you got, and a |
| When you ready to consider a consolidation of your | | | | new consolidation is not possible. |
| student loans, it will be necessary to keep all private | | | | Be careful to consider all of the costs to you that may |
| loans separate from your federal education loans. | | | | apply. Anytime that you extend the length of the |
| They cannot be consolidated together. | | | | payments you are also increasing the amount of the |
| The best time to consolidate your college loans is | | | | interest that you will pay. While you do want the time |
| during the 6-month grace period that you get right | | | | period of repayment to be long enough to be |
| after you graduate. When you consolidate during that | | | | comfortable, it is not a good idea to take as long as |
| time, you can receive a .6% greater discount in interest | | | | possible - unless it is absolutely necessary. When you |
| than if you wait until the grace period is over. The | | | | consolidate private college loans, make sure that you |
| basic interest rate on consolidation loans for your | | | | can pay off the loan early without any penalty fees |
| federal college loans will be the same wherever you | | | | applying. |
| go. | | | | Before you apply for a college loan consolidation, you |
| CHOOSE NEW PAYMENT PLAN BEFORE | | | | will want to calculate your budget to make sure that |
| CONSOLIDATING | | | | you leave enough money each month for you to be |
| Be sure to talk to your potential lender about what | | | | able to enjoy some things and possibly even move |
| options you have in the way of payments before you | | | | forward in your career and life. Also, do not forget that |
| sign a loan agreement. There are four main options | | | | your interest rates become locked once you |
| available to give you the most comfortable repayment | | | | consolidate. This means you will need to leave some |
| deal possible. Here are the various options you have: | | | | extra money for annual cost of living increases. |
| Standard Repayment - equal payments over an | | | | CONSOLIDATE EARLY TO AVOID CREDIT |
| extended period, but short enough to reduce interest. | | | | PROBLEMS |
| Graduated Repayment Plan - This plan allows you | | | | When you need to consider consolidating your college |
| to start with small payments that increase as your | | | | loans, you do not want to wait very long. Besides |
| salary increases (for Federal loans only). | | | | enabling you to take advantage of the lower interest |
| Income-Sensitive Payment Plan - put a stated | | | | rate for federal loans, you can also keep your credit |
| percentage of your paycheck toward paying off your | | | | intact. If you wait longer than the grace period and |
| college loan (for Federal loans only). | | | | cannot make the payments, you could badly damage |
| Extended Payment Plan - This plan gives you the | | | | your credit and cannot consolidate afterward. |
| most time to pay back your education loan, but you | | | | When you default on loan payments, it will be |
| also will pay the most interest. | | | | necessary to get caught up before you are allowed to |
| CONSIDER GOING BACK TO SCHOOL FIRST | | | | consolidate your debt. This makes it even harder to |
| If you are thinking about going for a graduate degree, | | | | repair a problem credit rating. Consolidate your college |
| now is the time to make that decision - before you | | | | loans early and save yourself the headache later on. |
| consolidate. Remember that your college loan | | | | |