Consolidating Student Loans b4 June 30th- Pros/Cons?

Question

I am considering Consolidating Student Loans b4 the June 30th rate increase. However, I heard it makes more sense if one has a large amount of debt. I have only about $10K, but doesn't the lower rate still apply to someone in my shoes. So why does it matter the amount of debt, as far as making this decision. I am aware that I would lose the 6 month grace period after Grad, but that seems a small price to pay, right?

Answer 1

I've been looking at consolidating, and my parents have been doing research as well. As far as we can tell, people should definitel consolidate! I think that the loss of the 6 month grace period is the only con, and you can definitely say LOTS of money.

Answer 2

By law there are no fees for consolidating. It does make sense because you can extend the repayment period. They are just saying it makes more sense because the bigger the loan, the more the student will save.

Myself, I am a grad and need to consolidate my loans before the deadline! So I went on a google hunt (I mean search ;). Eventually, I did find a site that has rated a few student loan consolidators, and says they have checked them out. Here's the web page: http://lendersrated.com/studentloans.htm...

Hope it helps you...
karateross

Answer 3

Sallie Mae is the biggest consolidator and they have a lot of info on their site, including a calculator that will show you how much you will save.

Also, a lot of other companies won't consolidate $10k but Sallie Mae will. http://www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/student_loan_consolidation.htm