While it is best to consolidate student loans and be able to pay them all off more effectively, there are times when we simply just need to defer this merging of loans. And likewise, all student borrowers should be reminded that once you have used up all your options on deferment when it comes to your current federal student loans, consolidating such loans can actually offer you with more opportunities to defer.
The most appropriate time for anyone to consolidate student loans is after his graduation day. For most of the student borrowers, their loans will actually become due at around six months after school has finished. This is a very important time, meant to be a grace period that will allow the borrower enough time to properly organize their student loans and finally merge them via a student loan debt consolidation program. And so the right thing to do is prepare yourself and your loans for the debt consolidation program for a few months until such them when the best time to consolidate student loans has arrived. It is indeed advisable that one does not implement the student loan debt consolidation proper until the grace period has passed.
What happens with the separate, unconsolidated college loans while on the grace period? During this time, the interest charged on the loans will be taken care of by the federal government. However, some are stubborn borrowers and wanted to have the loan consolidation immediately. If you happen to consolidate student loans even before the grace period, then payment of loan interest will fall under your responsibility. You in effect had set the federal government free of their responsibility to pay for the interests because of your early consolidation.