In School Loan Consolidation

In School Loan Consolidation

As of recent, a program known as EdFed began to offer in school loan consolidation. This great program allows students who are currently in school and would like to consolidate their loans at low current interest rates for the extent of their loans. For any student currently enrolled in an undergraduate or graduate program for at least half-time and who has federal student loans amounting to more than $10,000, this program offers the possibility to consolidate now instead of only after graduating.

Now, if higher interest rates take into effect in near future before you graduate, you would no longer have to worry about missing out on an opportunity to lock in the current low interest rates. Why pay hundreds of dollars extra in unnecessary interest payments? If you consolidate now for a lower interest rate and rates drop lower, you might have the chance to re-consolidate again at a later date. However, if rates go higher, you might well have missed the opportunity altogether.

The best news of all is that when an in-school consolidation is completed by a student, they will not need to pay a dime on those loans until after graduation. In in-school deferment is granted to borrowers on the condition that they attend school at least half-time. They will only enter repayment after graduation.

Moreover, EdFed offers incentives to students who complete an in school consolidation with them and follows through on their payments. By choosing to make auto debit payments, EdFed will give you a .25% interest rate reduction. If 36 payments are made on time they offer an additional 1% interest rate reduction from fixed interest rates that are already low. This means that the amazingly low interest rate of 3.5% is what you will end up with.

There is no way to know whether this is an opportunity that will last. There are no credit checks required an application process is quick and easy, so act now.