Rule Change: You Can Now Consolidate While in School!

[jdmba2007]

Thanks to a recent rule change at the Department of Education you can now consolidate your federal loans while still in school. Rates are about to rise by 1.93%. The deadline for consolidation is June 30th:

http://jdmba2b.blogspot.com/2005/05/important-news-for-those-with-federal.html

Many of you could save quite a bit by consolidating now.

[wildcataz2004]

Thanks to a recent rule change at the Department of Education you can now consolidate your federal loans while still in school. Rates are about to rise by 1.93%. The deadline for consolidation is June 30th:

http://jdmba2b.blogspot.com/2005/05/important-news-for-those-with-federal.html

Many of you could save quite a bit by consolidating now.

You can also consolidate all the loans you have and still be able to consolidate your new loans once you're done with law school

[jdmba2007]

this thread covers the issue pretty well:
http://xoxohth.com/thread.php?thread_id=191039&mc=15&forum_id=2

Good luck in law school everyone!

[jdmba2007]

Absolutely correct. This rule change will save me several thousand dollars by doing just that!

You can also consolidate all the loans you have and still be able to consolidate your new loans once you're done with law school

[jdmba2007]

this is a good thread on the topic:
http://xoxohth.com/thread.php?thread_id=191039&mc=18&forum_id=2

[Neub]

This seems to be a timely thread since I received a call from my Dad today pushing me to consolidate.

I have a question though regarding the 6-month grace period since that seems to the only "catch".  Right now, after just graduating undergrad, I assume I am already raking up "grace period time". Since they will go into deferment once I start LS, would I normally without consolidation receive another 6-months for my undergrad loans after LS or just the remaining 3 months or so left from this summer?

I assume with consolidating, I lose all grace period time from the point I consolidate and will have to make payments until I begin school and at which point I graduate LS will immediately have to start making payments again.  All of this being independent of any LS loans.

Just trying to clear all this up in my mind.  Any help you can provide would be great. Thanks.

[jdmba2007]

without consolidating you would still get the full 6 months after finishing law school. If you consolidate with a private lender you will lose all of your grace period.

If you consolidate with the feds http://www.loanconsolidation.ed.gov/index.shtml
you will still get the entire 6 month grace period... but your terms may not be quite as great as with a private lender.

hth

This seems to be a timely thread since I received a call from my Dad today pushing me to consolidate.

I have a question though regarding the 6-month grace period since that seems to the only "catch".  Right now, after just graduating undergrad, I assume I am already raking up "grace period time". Since they will go into deferment once I start LS, would I normally without consolidation receive another 6-months for my undergrad loans after LS or just the remaining 3 months or so left from this summer?

I assume with consolidating, I lose all grace period time from the point I consolidate and will have to make payments until I begin school and at which point I graduate LS will immediately have to start making payments again.  All of this being independent of any LS loans.

Just trying to clear all this up in my mind.  Any help you can provide would be great. Thanks.

[Neub]

thanks...that definitely clears up the question.

[jdmba2007]

thanks...that definitely clears up the question.

no problem. glad to help!

[JS112]

I know I've only got a matter of hours left to consolidate, but I'm not sure I should go through with it or not. 
Here's the situation:

I have no loans from undergrad.
Currently I've got a perkins loan (which has a fixed rate already, so I wouldn't consolidate that), a subsidized stafford loan and then an unsubsidized stafford loan.

As, I understand it any loans for the next school year can't be included in whatever I consolidate. So, I'd technically only be consolidating that one unsubsidized stafford loan. Would it make sense to do this since from what I understand, under current law if I consolidate now, I can't reconsolidate?

I'd ask my financial aid director, but there currently isn't one. Any input is appreciated.