When should I?
Asked by Mandy CI am in my last semester of college. Should I wait until I graduate to consolidate my student loans? Do I wait until I start repaying? Basically, when is the best time to consolidate?
Favorite Answer
Answered by schester3
Take advantage of the grace period. Don't automatically consolidate. Compare rates, payback period, etc. Watch the market and look for interest rates to be favorable. You don't need to consolidate every loan - if it is small and has a good rate, no need to consolidate it with the other loans. i had a $30/month loan I kept forever until I paid it off out of convenience (what seems like a lot of money your 1st job won't seem like much 5 years from now). Don't buy into the cconsolidation out of convenience argument the loaning institution will make. Most loans will allow for automatic withdrawl fom your checking/savings account. If not, most banks allow for automatic payments from your accounts without additional fees. If you do consolidate and find a good rate, see if you can get the same rate over a longer period. You can always repay earlier (in effect keeping the shorter period).
Take advantage of the grace period. Don't automatically consolidate. Compare rates, payback period, etc. Watch the market and look for interest rates to be favorable. You don't need to consolidate every loan - if it is small and has a good rate, no need to consolidate it with the other loans. i had a $30/month loan I kept forever until I paid it off out of convenience (what seems like a lot of money your 1st job won't seem like much 5 years from now). Don't buy into the cconsolidation out of convenience argument the loaning institution will make. Most loans will allow for automatic withdrawl fom your checking/savings account. If not, most banks allow for automatic payments from your accounts without additional fees. If you do consolidate and find a good rate, see if you can get the same rate over a longer period. You can always repay earlier (in effect keeping the shorter period).
