Consolidate student loans within the grace period

Why to consolidate your student loans within your grace period

Before the ink even dries on your diploma, expect to be contacted about student loan consolidation. Recent grads are sometimes reluctant to dive into any kind of federal student loan consolidation program thinking it’s just another type of loan.

Well, it is just another type of loan. But the difference is that you’re combining all of your loans into one easy monthly payment, hopefully with a lower interest and a lower total monthly cost.

A great piece of advice regarding federal student loan consolidation is to consolidate within the six-month grace period. If you’re still within the six month post-grad grace period, you’ll probably qualify for additional savings. In order to qualify, you’ll have to get your application in before the last day of your grace period. When completing the application, make sure not to leave anything out. Delays mean time – and potentially money – wasted.

If your grace period ends and you haven’t heard anything about your consolidation application, begin making your monthly payments. Until you see it in writing, you can’t be sure that the consolidation loan has been approved and processed.

Play it safe with your student loans and always make payments on time. You will be dealing with this debt for years to come, so pay careful attention to all of the details.

Recommended resource: Student loan center