When should I consolidate my student loans?
When you should consolidate your student loans is primarily based on your status as a student - whether you're still in school or have left your program or graduated. If you're in "repayment" mode, meaning you're all done with school and the student loan bills are starting to come, then you can consolidate now. If you're in a "grace period" (the time right after you graduate but before you have to pay your student loan bills), you can consolidate. Beware though, if your consolidation application is processed before the end of your grace period, you may enter into repayment early. If you're still enrolled in the program for which you borrowed, you can't consolidate.
If you have loans disbursed before July 1, 2006, there is one date on the calendar that you should be aware of: July 1. On that day each year, interest rates for all but the newest federal student loans are reset. Keep an eye out for information about what the new rate will be.
As long as your application for federal consolidation is complete and submitted before the deadline, you’re good to go. Note however, that in general, it takes between 30 days to 90 days to complete the loan consolidation process. Once your loan is consolidated, you’re first payment will be due in 60 days.
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