Consolidate Student Loans – Smart Tips

Consolidating student loans is a great opportunity to lower your monthly payments and free up some cash each month. Here are some smart tips we have for you on the process of consolidating student loans:

- If you consolidate your student loans during your grace period you can usually qualify for a lower interest rate from the lender.

- The federal government passed a recent law that lets borrowers consolidate their student loans with any eligible FFELP (Federal Family Education Loan Program) lender.

- It’s always best for you to get the lowest interest rate you can from the lender that you choose, but interest rates on consolidating student loans that were backed by the federal government are fixed for the life of the loan and can’t be higher than 8.25%.

- If you have both federal and private student loans, don’t let your lender put them together into one consolidated loan. For instance, the cap on interest charged is at 8.25% now for federal student loans, and you would lose this cap if you consolidated both federal and private loans into the same loan. It specifically mandates that federal student loan consolidations have to have fixed interest rates, no processing fees or loan fees of any kind, no credit checks for the borrower, no prepayment penalties if the borrower pays off the loan early, and a lower interest rate if the loan is consolidated during the grace period. By Bruce D Hunter

Undergraduates – Consolidate Student Loans Now
By Stve Gong Wen

If you really don’t have the time to look into consolidating student loans now, have a trusted family member look into it. Before you go to consolidate student loans, remember one important thing. You can’t consolidate federal and private loans together.

If your potential loan consolidator says that you can consolidate federal and private loans together, move on. Some federal loans for undergraduates can’t be consolidated. There is a dizzying mountain of websites offering student loan consolidations. Take your time in picking a consolidation loan service.

The details and rules for consolidating your student loans while you are an undergraduate differs from financial institution to financial institution. Some consolidation loans are only for US citizens. Learn more our best additional knowledge on about nursing student loans, graduate student loans tips, student loans guaranteed, defaulted student loan, and smart way to find student loan consolidation program.