Should I consolidate my student loans?

student loan consolidation rates

I am starting law school this fall. I have about $25,000 in undergraduate student loans and I know absolutely nothing about finances! My loans are spread among 4 different lenders and people are calling my house everyday telling me that I will get all kinds of benefits if I consolidate. I didn't consolidate when I graduated because the interest rate was high and my loans will go on deferment when I start school.
If you are in deferment, there is not so much of a need to consolidate, especially if you have government guaranteed loans and not personal education loans. But even in deferment, interest is accuring, you just aren't on the hook to pay it, so you should find the lowest fixed rate option you can find.

student loan consolidation rates

The interest rate question is a little bit harder because you have to have a view 3 years out. Rates have been rising, but are still reasonable. If there is a wider effect from subprime mortgages and a slowdown in the economy, rates may come back down. If the economy gets stronger, rate may increase. Are your loans fixed rate right now? You might not have to worry depending on the specifics of the existing loans.
1-Even if you consolidate you can still use the deferment when you go back to school, it is your federal right.

2- You have your loans spread out between four different lenders, when you consolidate that will be one, which helps your credit, less open lines of credit.

3-No matter what company you consolidate with, your fixed interest rate WILL be the same, it is figured by a federal formula all companies must follow. If anyone tells you otherwise, they are lying or misinformed.

4- The main difference between companies are reductions and rebates, but most of them depend on you going into repayment, so those won't matter for you because you will be in deferment, and when you graduate you will want to re-consolidate anyway.

5-There is always a chance that interest rates will go down, but three years ago the variable rate on federal loans was at 2.77%, now they are at 6.62%, and it doesn't look like the rates are going down within the next ten years. But, like I said earlier there is always that chance.
That’s all.