When Should I Consolidate My Loan?

You can consolidate your federal education loan at any time during payments. You can do it once you graduate from school or you can do it while you're still enrolled. However if you only have 2 or 3 years of payments left, it might not be worth it to extend it another 10 years. So, that means that right now is the best time to consolidate your federal education loan. Also, hurry and consolidate before unpredictable interest rates go up.

Slash your Monthly payments in Half!

If you consolidate your federal education loan, your monthly repayments on your loan can be reduced by 50%. Some consolidators will even cut your monthly loan payments by %60! But, reducing your monthly loan repayment on your federal education loan is just one of the great money saving benefits of consolidating your federal education loan.

Extend Your Loan's Repayment Life

If you are stuck with a loan repayment program that is only 5 years long and you don't think you will pay it off in time, you're allowed to extend it. You can extend your loan's life by more 5 years. For example if your loan's life is only 5 years you could extend your loan's life to 10 and sometimes even 15 years! Some consolidators will even extend your loan's life to 30 years! This will give you plenty of time to repay your loan and easing the stress of an upcoming deadline. Also, don't forget that extending your loan's repayment life will lower your monthly payments
too.

Interest Rates

Consolidating your loan will lock you permanently into the interest rate you have now and protecting from rising rates in the future. Also, the interest that you are charged on your federal education loan is tax deductible.