Consolidating student loans after graudation

Because PLUS loans are unsubsidized, interest will accrue during the deferment period. This may lead to a lower interest rate on a Direct Consolidation loan, but only if you are consolidating variable rate loans.However, once you consolidate, you lose any remaining grace period.During school, be sure to track the amount you are borrowing each year, know what the expected monthly payments will be, and compare them to your expected income after college.This will help you stay on top of your student loan debt and keep it to a manageable amount.We’ve outlined what to expect when it comes to repaying your student loans.

For example, if you have an in-school deferment on a loan that entered repayment at an earlier date (before you returned to school) and you graduate, drop below half-time enrollment or withdraw, you will be required to begin making payments right away on the loan because the original six month grace period was already used up.Parent PLUS borrowers may also defer repayment for six months after the student on whose behalf the loan was borrowed is no longer in school or if the parent is also a student, six months after the day that the parent is no longer in school.Parent PLUS borrowers must apply for this deferment.Unless you plan to enter a field that will provide a large enough salary to meet your monthly obligations, your student loan payments could take up a considerable portion of your monthly budget.One of the many responsibilities you have after leaving college is to stay in contact with your student loan servicing agency or lending company.

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