Student consolidation loans can help students roll up all their student loans that they used to fun their college education into one payment. This is often a great solution for people because it is much more convenient and will lock in the rate at a lower interest. Student consolidation loans are available for undergraduate and graduate students alike so anyone taking out loans to achieve their MBA, law degree or doctorate will be able to take advantage of this option. Student consolidation loans are a topic that is in the news a lot lately because of changing regulations. Prior to July 1, 2006, students could consolidate loans prior to graduation, often locking in favorable interest rates prior to graduation. However, after July 1, 2006, the rules will now be that a student must wait until graduation before taking out student consolidation loans.
For recent graduates, this is an ideal time to consider student consolidation loans. Projections indicate that interest rates will rise dramatically after July 1, 2006 so those who waited may be in an unfavorable position when it comes to student consolidation loans. Keep in mind the process can be timely so you will want to start as soon as feasible. If you have several loans taken out to fund the college tuition, you may want to think of consolidating if you have not start paying them off or if you still have a significant period of time left to repay. You may be able to save thousands of dollars on the life of the loan by locking in low interest rates now rather than waiting.
For students who have not yet graduated but want to take advantage of consolidation before the regulations change, there are a few things to be considered. You will typically only be able to take out student consolidation loans once. So, this decision needs to be carefully weighed in order to ensure you are getting the best interest rate possible. Although you can re consolidate additional federal loans, the interest rates that are locked in will remain the interest rates you are stuck with. Parents and students should carefully consider their options before making a final decision. Another option is to contact an expert on the Internet or through your financial institution who will be able to look at your loans and advise you on your best course of action. This may give you a sense of security in your decisions.