When Should I consolidate?

[kermee]

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I'll be graduating in the Spring of 2005 and have the option of consolidating my loans after the grace period or consolidate earlier to lock in the lower rates.

1. The federal interest rate will likely rise by at least 1.34% after 7/1/05.
2. If I consolidate now, my only choice is to go through direct loans, as some of my loans are either through direct loans, or salliemae. If I waited, I could benefit from the other consolidator's promotions.

Any suggestions, on the best strategy?

Thanks!

 

[mpp]

I'd take the lower rate over other promotions. The promotions will likely not beat the lower rate, especially if you will be paying over 20+ years.

Just be sure to check the fine print in terms of deferment options so you don't get stuck with having to make payments when you can least afford it.