Students who consolidate their loans can receive a fixed interest rate and one monthly payment.
Loan consolidation allows students to take their loans and combine them into one. It also can help students by setting a fixed interest rate because direct loan interest rates can increase at the beginning of a new fiscal year.
"Consolidation is available to any student," Nadine Hamrick, associate director of financial aid said. "They [students] can do in-school deferment now."
Hamrick recommends consolidating in June for students who are graduating.
"If a student is graduating in May, our [the financial aid office] advice would be to consolidate around June to extend their grace period," she said.
Hamrick said students normally receive a six month grace period before they have to start repaying their loan. She said graduating students should consolidate before July 1 because after that date, interest rates can rise.
"The benefits of consolidation is that it allows students to extend the length of their loan past the normal 10 year payment period, if necessary, and students just have one monthly payment to keep track of," Hamrick said.
She said if a student has already consolidated and has had to take out another loan, they can consolidate again.
"I think it is a great program, especially if a student has more than one type of loan" Missy White, financial aid assistant II said.
She said that after graduating she had three different types of loans, monthly payments, interest rates, and grace periods. She said that it was confusing trying to keep track of all the necessary information.
"I think that it is a real advantage," said White. "And the process wasn't hard. I filled out the application online, and people at the program answered any questions that I had."
Further information about loan consolidation students can visit the Financial Aid Office or at www.loanconsolidation.ed.gov.
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