There are a handful of federal student loan consolidators and, right now, volume of loans they are originating is large, but manageable. Most consolidations are completed in 45-60 days. But, you can bet that number of people seeking consolidation is going to grow as deadline (June 30, 2003) approaches. So, if loan consolidation sounds like a good idea to you, read on to see if it warrants your further investigation and, if it does, get your application in quickly.

Is Student Loan Consolidation Right for You?

Federal student loan consolidation is a great financial opportunity, but it's not right for everyone. To make best choice for you, you should consider following: Q. Can you take on a longer repayment term in exchange for lower monthly payments? A. For most borrowers, loan consolidation extends repayment term from standard 10-year (Stafford loan) term to up to 30 years, depending on your balance. A longer repayment term means that, unless you prepay your loan, you will pay more interest than you would on your unconsolidated loans. You can control your interest cost by choosing one or more of following: ·Request a shorter repayment term than your balance allows. ·If you can afford it, choose an equal payment plan. You should always make monthly payments that are as large as you can comfortably afford, and an equal payment plan will cost you least because you are paying all principal and interest due each month. A graduated repayment plan will reduce your monthly payments in early years, and you might need to choose one of these plans to make ends meet, but they will cost you more in total interest. ·Prepay your loan whenever you can. Just send a note in to your loan servicer with your over-payment asking that it be posted to your principal balance. ·Don't get behind in your payments. Interest will continue to accrue on your unpaid balance, costing you more.

Q. Do you owe enough and have enough time remaining in your repayment term to really make a difference? A. In today's rate environment, regardless of indebtedness, most people who have graduated recently or have been repaying their loans for less than 5 years will benefit. To get a rough estimate of your savings with a consolidation loan, go to www.ConsolidateYourLoans.com, click on "Calculate My New Loan", complete simple worksheet and click "Consolidate".

Credit scores range from 300 to 900, and scores from 640 to 700 are considered excellent. Most lenders flatly refuse to even consider scores of less than 500, but still others will approve loans to new borrowers who have no credit scores at all. Needless to say, borrowers with "excellent" scores qualify for most favorable rates and terms.

To find out what your credit score is you'll have to contact a lender or mortgage professional because report you request from any of credit reporting bureaus will not show your score. However, requesting your credit report (even from one of bureaus) can be a great first step to repairing and/or improving your credit score. So, at least once a year, get a copy of your report and READ ALL OF IT. The report will come with instructions on how to read it and how to correct misinformation. Once you have your report, do following:

1. Look for anything that may indicate someone else is using your credit such as reports that you have changed your address or newly opened accounts that you are not familiar with, etc. This is a good way to make sure you are not victim of an identity thief.

2. Correct errors on your report without delay by following instructions that came with it.

3. Pay your bills on time every time, ESPECIALLY YOUR MORTGAGE. Also remember that some bills that wouldn't ordinarily report to credit bureaus (such as your rent, utilities, phone bills and medical bills) will show up on your credit report as delinquencies if you don't pay them, and these "little, unimportant" bills can pull your credit score down just as quickly as other larger accounts.

4. Close any unnecessary accounts. Most lenders prefer that borrowers have a minimum of four open (active) accounts over last 24 months but once you've reached four, fewer additional accounts better.

5. Pay down your credit card accounts. Keeping your balances under 50% of approved limits is a definite plus for credit scoring.

6. Pay off collections and judgements. Full payoff is always preferable but if necessary, contact creditor and arrange a settlement for less than full amount owed. Afterward, make sure that you get written confirmation that debt has been paid and make sure that credit bureau reflects this on your credit report.

7. Think twice before authorizing new inquiries on your credit report. Too many in a short period of time really makes lenders nervous.

The three credit report bureaus are listed below. You can contact each of them by phone, mail or online. Credit reports cost about $9 each, unless you've been turned down for credit in last 60 days, in which case, report is free. Your credit report request should include your full name, social security number, current address, date of birth, and previous address if you've moved in last 2 years.

Equifax P. O. Box 105496 Atlanta, GA 30348-5496 800-997-2493 www.equifax.com

TransUnion P. O. Box 1000 Chester, PA 19022 800-888-4213 www.transunion.com

Experian (formerly TRW) P. O. Box 9595 Allen, TX 75013-0036 888-397-3742 www.experian.com