Consolidate Before your Rate Rises - Save Plenty

OK - You child has finally done the graduation walk and it’s time to start thinking about those loans you invested in for Junior's education. Are you want to know how to make a huge saving?

Then start looking into consolidation early? Here are some reasons why it’s a good idea for most people to think ahead and save on interest.

If you have loans before July 1, 2006 they are of the variable interest rate kind, and those rates will most likely rise this July 1st. When I learn more I will post here what the new rates will be.

If you can consolidate while in your grace period - this could save you thousands of dollars. Afterall consolidations are simply a weighted average of all your federal loans and their interest rates. They jumble them all together.

Lets take a Stafford loan, during your grace period your rate is 6.543% while once you enter repayment your rate is 7.143%. Consolidate before your rate rises and you will save a LOT of money! The difference is a surprising 0.6% which represents a big lot of $'s over a 10 year period.

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