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, and lenders will see an unprecedented number of requests that will most certainly bog system down to some extent. 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. ·Loan consolidation programs offer a number of repayment options. 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".

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".