Consolidate student loans quickly to take advantage of low rates. Rumor has it as of July 2006 those rates are expected to jump substantially. There is also current new legislation that requires you to consolidate by July 1, 2006 if you want to do so while you are still attending school. If you act now you could lock in a fixed rate possibly as low as two and three quarter’s percent depending on the rate you pay now and how much you have outstanding on your loans. Therefore you could save yourself quite literally thousands of dollars and leave much more cash in your pocket for things such as house payments and business ventures. Some lenders offer percentage rate reduction after a certain amount of on time payments are made, again allowing you to reduce your debt automatically sometimes as much as one and three quarter’s percent.
Consolidate student loans carefully to be sure that you are not extending the life of the loan too far which will cost you more money in the end. If you find yourself with extra funds consider just paying it off and getting it out of your life. Though you can cut your monthly loan payment as much as sixty percent by consolidating, it would be a much sounder choice to rid yourself outright of the burden if you find yourself with the free cash.
Consolidate student loans wisely by weighing the length left on your loan against the interest that will be charged over the life of the consolidation term. Be sure that in the end you will not be hurting yourself by adding unnecessary interest. However, as you are only allowed to consolidate once this is one of the best times to do so if you are going to since the interest rates are so low and are expected to rise dramatically in July of 2006. The good news is that there are no prepayment penalties on student consolidation loans so should you combine your student loan then later find yourself with the funds to payoff it is easily and painlessly accomplished without costing you an arm and a leg. Consolidate student loans at any credit union or bank participating in the Federal Family Education Loan Program, or you can go straight to the U.S. Department of Education to secure the consolidation. The requisites and loan conditions are generally the same, no matter where you go consolidate.