Fed Financial

What do i do with student loans once i graduate?

I am graduating in a month and need to know when i have to start paying my student loans? I heard that i am supposed to consolidate my loans into one loan.. Is this true? Has anyone ever done this?

Public Comments

1. If you are yet to consolidate you'll have a 1 year grace period before you have to start paying on them. You are supposed to consolidate your loans to lock in an interest rate. Pick a bank and you can usually apply online to consolidate. Banks will offer discounts for things like ontime payments or setting up automatic withdrawals. I'm in the process of consolidating my husband's loans. If he would ever stop procrastinating it would have been done by now.
2. hello there, Upon graduation, the government requires that you consolidate all of your student loans... They will actually penalize you if you choose not to consolidate your loans.. In all reality though, it is in your benefit to take advantage of this program.. The reasons are as follows.. 1st. this is a free program offered by the govenment 2nd. it takes all of your loans with variable interest rates and puts them into one single FIXED RATE LOAN (This alone can save you thousands of dollars because your rates cant rise after consolidation) 3rd. By consolidating it simplifies your finances.. For instance, if you have 6 loans, you would have to send 6 payments each month... Thats 6 checks, 6 stamps, 6 envelopes, you see where im going with this... Once consolidated, you make one payment to one lender..thats it... 4th. Being you are consolidating, the new fixed rate is based off of the "weighted average" of your current laons interest rates... So the sooner you consolidate the better because the rate will be lower... This effectively GIVES YOU A LOWER MONTHLY PAYMENT!!! I dont kknow about you but when i graduated, the first thing i was worried about is how much will i have to apy each month on my loans.. This will ensure an affordable payemnt... 5th. last but not least, the entire process can be DONE IN JUST 10 MINUTES... I gather the information over the phone, and you electronically online if you have internet access.. Very hassly free process, you dont need any paperwork or documents, the NSLDS (National student loan database system) has all the information we need available online... Also once consolidated, you have options of deferment and forebearance as well which can give you as much as 3 years after graduation wioth NO PAYEMNTS!!! I know this is alot of information to throw at you, and the government doesnt do the best job of explaining to college kids why it would make sense to consolidate your loans... It definitely is a wise decision... Take a lok at my yahoo 360 profile.. You can find alot of information about consolidation and also direct links to my companies website... http://360.yahoo.com/my_profile-HlUDUhMib7M9Wlj6o6L2SfGcEYtkt9xsaQ--?cq=1 I work with Student Aid Lending, we are a nationwide lender administed by the department of Education (We have a title IV license) Feel free to call or email me and i can process the entire consolidation for you in just 10 minutes over the phone.. I hope this helps, and again, do not hesitate to call or email me with any additional questions! Jason Fry Financial Advisor Student Aid Lending 1-800-964-0642 ext. 114 jasonf@StudentAidLending.com
3. Once you graduate or drop below 6 units, you get a grace period before you must start making payments on your student loan. This grace period is 6 months long. Once the grace period expires, your first loan payment will be due within 30 days. As far as consolidation, it is in your best interest to consolidate. Each loan you take out for each school year is counted as an individual loan, each with it's own interest rate and repayment schedule. So, considering that the minimum student loan payment on a Standard Repayment plan is $50, and say you have 4 separate loans, you'll be paying $200/month! If you consolidate, depending on the total loan debt, you could greatly reduce your monthly payment as save money in the long run in interest. Also, if your loans are currently at a variable interest rate, consolidation will "lock-in" that rate so that it remains the same for the life of the loan. If all of your loans are through the same lender and you don't find any problems with their service, then just contact your lender about applying for a consolidation loan. This is essentially a brand new loan in the amount of all your total loan debt, thus paying off the other loans and creating one larger loan. If you'd like to go with a new lender for some reason, then do some research, and contact the lender of your choice for a consolidation application. You may also choose to consolidate under the Federal Direct Loan program, this means the US Department of Education will pay off your loans and then you will make payment directly to them (their website is www.dlssonline.com) and you can apply online. If you've already received your last loan disbursement, go ahead and consolidate now so that it's well taken care of before your grace period ends and you enter repayment.