What is the best way to go about finding the safest and best rates to consolidate my student loans?
I want to consolidate my student loans to the lowest rate possible before the July 1 deadline for rate increases on student loans. Where do I start in order to get the best information to help me make a safe decision?
Tags: Best, Consolidate, Finding, Loans, rates, safest, Student, Student Loan
Do a Google search for student loan consolidation. Personally, we used AES.
Hi,
Act now. Contact your lender and provide details of each student loan you want to consolidate. The terms you get are based on when you apply for a consolidation loan, not the date it’s granted. A new consolidation loan will be opened in your name for the exact amount you owe. The new loan’s proceeds are then used to pay off each of your existing loans.
The new consolidated loan features a fixed interest rate calculated as the weighted average of the rates of the loans consolidated, adjusted up to the nearest 1/8 percent and not to exceed 8.25 percent.
You’ll start repaying on a consolidation loan within 60 days, unless you qualify to postpone repaying the loan. Most federal loan programs allow students to defer their loans while they’re in school at least half time.
A student is eligible for a lower in-school rate while in college or within a six-month window after graduation. Thanks to the Deficit Reduction Act, after June 30th all in-school consolidations are eliminated. The only time you’ll be able to consolidate your college loans will be after you graduate.
See the related web sites below for additional info.
Good luck!