| There are benefits and disadvantages when you | | | | consolidate your loans during the later part of your |
| consolidate college loans. Now that you're a graduate, | | | | grace period. |
| and after the celebration has passed, you have to | | | | Repayment Period Extension |
| take some serious steps in meeting your obligations - | | | | You can extend your repayment period of up to 30 |
| that is, to repay your student loans. By consolidating | | | | years basing on your total education loan debt. This |
| your student loans, you combine multiple loans into | | | | means that your monthly payments will dramatically |
| one. | | | | decrease. If you're having a hard time coming up with |
| How Student Loan Consolidation Works | | | | the monthly payments, then this will be good for you. |
| It's actually very simple. When you borrow a number | | | | However, by stretching your debt over a longer |
| of student loans from different lenders when you're | | | | time, you will be paying more interest over the life of |
| in school, you might have a hard time keeping up | | | | your loan. In the end, you'll be paying more for your |
| with all the payments. By consolidating loans, all your | | | | loan in the long run. That's why it is better if you |
| student loans are combined into one new loan from | | | | settle your accounts with the shortest repayment |
| one lender, at a lower interest rate, and even longer | | | | period possible that you can afford. And, there's no |
| time to repay. Although this might sound enticing, it is | | | | penalty for prepayment so you can pay even before |
| best if you consider the benefits as well as the | | | | the payment is due. |
| drawbacks so you can make a good decision. | | | | One Payment From One Lender |
| Consolidation During Grace Period | | | | On the good side, consolidation will really simplify your |
| There are two sides to this issue. The good thing | | | | life. You only have to deal with payments to one |
| about this is that you can receiver a lower | | | | lender, and is thus less hassling to you. On the |
| consolidation loan interest rate if you consolidate | | | | downside, you could be giving up some benefits that |
| variable-rate Stafford loans during your grace period | | | | your current loans provide such as loan cancellation |
| (six months after you leave school before you start | | | | and deferment eligibility. |
| making payments). However, the bad side is that | | | | Think about these things. Those are just some of |
| when you start consolidating your loans during grace | | | | the things you have to consider before you |
| period, you forfeit the remaining grace period and | | | | consolidate college loans. It's up to you to decide if |
| have to begin making payments on your consolidation | | | | the pros outweigh the cons, or the other way |
| loan within 60 days. To solve this, you can | | | | around. |