| As soon as the student loan company learns you | | | | charged interest on more than four loans. In fact one |
| have graduated from a university your student loan | | | | year you may have an interest rate of 6.8 percent, |
| will come into the repayment status. Generally the | | | | but the next year's loan was at 7.1 percent. Federal |
| first month you are out of college you will be | | | | loans do not consolidate private loans; however if |
| required to make a payment. Most student loans are | | | | you have more than one federal loan you may get |
| set as a twenty year loan. The company totals up | | | | these consolidated for one monthly payment and a |
| the interest, the years you will take to pay it off and | | | | lower interest rate. |
| then provides you with a monthly payoff amount. | | | | You should keep your federal student loans separate |
| Even when you have been with the same student | | | | from private loans. The reason for this is because of |
| loan company for your college years they consider | | | | the extreme difference in interest. Most federal loans |
| each year or each semester to be a different loan. | | | | are lower than 3 percent. The average private |
| While you may make one payment your loans are | | | | student loan even with consolidation is 6 percent. You |
| not consolidated even within this one company. This | | | | will never find a consolidation option with all loans |
| is important, but we will get back to that later. | | | | combined than your federal loans. |
| You can elect to set up automatic payments on a | | | | You will still want to consolidate the private student |
| monthly basis for the repayment amount the | | | | loans. How this works is that any loans you have |
| company sends you. You can also send a check with | | | | within the same company or with other companies |
| your payment stud. Typically you are given a small | | | | will be placed into one loan. You will be given the |
| interest rate deduction for automatic payments. | | | | going interest rate on your loans, and then you will |
| If you have federal student loans keep in mind that | | | | have one monthly payment on the private loans. |
| these loans provide a lower interest rate than your | | | | Keep in mind if you have private and federal loans |
| private loans. This is essential when it comes to | | | | you will still have two payments, but both loans are |
| consolidation. You will want to consolidate your loans. | | | | consolidated wisely. |
| Even if you are making one payment you could be | | | | |