Consolidation?

[lr_pharm]

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Hi, I was wondering if anyone knows how consolidation works? Do you think now is a good time to do this . . . or would it be better to wait after we are done with Pharm School? . .. I received a letter saying I should consider consolidating my undergrad loans while I'm in deferment. They said they would lock my interest rate at 2.875%. 😕 Gosh I don't want to even think about how much we will owe!! 🙁

 

[off2skl]

There has been talk about the interest rate going up to a fixed 6% in the next year or so. So, it may be beneficial to consolidate undergraduate loans now to lock in the lower interest rate. However, once you consolidate you are expected to make monthly payments, which may be difficult while in pharm school. You can get a deferment (I think it's for financial hardship), but then your loans will be accruing interest that entire time, whether they were originally subsidized or not.

You have until July 1 before you have to make a decision for this year. Interest rates come out in July and last for 12 months. I think the new interest rates will be announced sometime in May or June and if they go up, you can choose to consolidate before they officially change in July 2005.

 

[28657]

You can only consolidate your loans ONCE. So if you choose to lock in the low rate for your undergrad loans, you will be subjected to pay possibly super high rates on your pharmacy loans. Personally, I am waiting until I graduate pharmacy before I consolidate my loans - hopefully it works in my favor. 🙂

 

[lr_pharm]

Thanks for your help! I'll have to weigh out the benefits and decide. I hope you all end up doing what is best for you, too.