Financial Reflections

I’ve written about student loan consolidation before, because the date that loans go up is July 1st.  I know one couple that has had to make sure they consolidated their student loans in order to avoid the rise in loans rates.  They’re trying to reduce their debt load as much as they can, and this is one step in the right direction for them.

Interest rates seem to be going up all over the place and the rates that new students are going to pay are might be much higher than student’s have had to pay before.  Be careful and do some research before you consolidate your student loans, because there are some caveats. For example, this article points out one pitfall:

“Borrowers who consolidate must immediately start repaying the loan, whereas most variable loans give students up to six months past graduation during which they have no payments.”

So if you have student loans, now might be a great time to at least look into consolidation and see if it’s right for you.  If you’ve had any experience with this, please comment and let me know how things worked out for you…