When is the best time to consolidate your loans? Also can you do it more than once?

The best time to consolidate your loans is within your 6 month grace period...this grace period begins when you graduate school or you withdraw from school, or you drop below part time status. Why is the grace period the best time to consolidate? because if you still have some Stafford loans that are at a variable rate...your rate for those loans is .6% lower while in your grace period then it is outside of your grace period. Keep in mind that if you have all fixed rate Stafford loans...you can consolidate at anytime...the grace period has no effect on the rate you recieve. So here is an example:

1. You have been in school since 2004
2. All your Stafford loans from 2004-2006 are at a variable rate of (6.62%)...lets say you had $7500
3. ALl your Stafford loans from 2006-2008 are fixed in at 6.8%...$12,500
4. If you consolidate within your grace period: $7500 @ 6.62% and $12,500 @ 6.8%...these weighted together would give you an interest rate of: 6.75%
5. If you waited to consolidate...lets say a year from graduation: $7500 @ 7.22% and $12,500 6.8%...these weighted together would give you an interest rate of 7.0%

So as you can see....your rate is lower within your grace period ONLY if you have variable rate loans. Keep in mind that variable rate loans can change every July 1st...so if you are thinking about consolidating now....it may be wise to wait to see if the rates will be increasing or decreasing...then you can make your decision accordingly.

As ALways, your friend...Ms. Stafford

I forgot to address the 2nd question....you cannot consolidate the SAME loans more than once...but if you go back to school and you take out more loans...you can reconsolildate everything together...keep in mind that the loans you consolidated before will be weighted in at the rate in which you consolidated.

Just finished College and you need to reduce your student loans?? Student Loan Consolidation is a great way to manage your money after you have completed school. With current history low interest rates your student loan consolidation couldn’t come at a better time. You can combine federal and private loans under a single low monthly payment. Student Loan Consolidation Is Great Money Management which save money and time with a loan consolidation

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