Visio Talk

If you’re preparing to graduate and begin repayment or even if you’ve been paying on your student loans for some time, student loan consolidation can be a very wise financial move. It’s typical for students to have several student loans when they graduate after four or even just two years at college. Consolidating can make repayment a simpler process and help you manage your financial future with low variable or fixed interest rates.

When you consolidate your student loans, you take out one large loan that combines your different, smaller loans into one. You then make only one payment per month instead of several. Although the government caps the rate lenders can charge for student loan interest, it is up to you to shop around with lenders to get the best consolidation rates and terms. Take advantage of a student loan calculator to help you determine which terms and rates will be most advantageous for you.

It’s crucial that you take the time to carefully consider your options before you consolidate, because you can only consolidate student loans once. When you consolidate will affect your rates and terms, as well. Rates are generally more favorable if you consolidate while you are still in school or during the six month grace period you are given immediately after graduation.

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