Who is eligible to consolidate school loans?
The greatest advantage is afforded to those who consolidate during their grace period. Government loans provide students a grace period of six months after completion of school before loan repayment begins. If you graduated or left school any time between December 2004 or June 2005, you are in this period now. Even though the interest rate is slightly higher for those who are through their grace period and have already begun to pay back their loans, there is still a benefit. In addition, the U.S. Department of Education on May 16, 2005, indicated that any students still in school are eligible to consolidate to take advantage of this lower rate. The disadvantage may be the loss of the six-month grace period following graduation. What are the steps to consolidate? The easiest way to consolidate is to go through your current lender. The rates that are established by the federal government for the guaranteed loans are required to be the same with each loan provider. Therefore, there is no
