We know you just graduated and you don’t want to think about your student debt. Really. We understand. Sadly, you need to think about it, and you need to think about it before July 1st.

Why? Because that’s when the government recalculates the interest rate for student loans. If you wait, you will have to pay more interest. This would be bad for you. You need to look at your loans and make a decision about consolidation now.

Yes, it sucks. Yes, making important financial decisions is annoying and hard. You have to do it. If you don’t, a cute kitten will die. Trust us. In addition, if you consolidate while you’re still in your grace period, you may be eligible for a rate reduction.

Michelle Singletary, NPR’s personal finance contributor, suggests several resources that will help you learn about loan consolidation:

• Direct Consolidation Loans
• FinAid.org
• Project On Student Debt

Why Consolidate?

If you have loans with a variable rate, consolidating can give you a fixed rate. You may also be able to get lower monthly payments (and a longer loan) by consolidating. It’s not for everyone, so please don’t assume that we’re telling you personally to consolidate, but for some people it’s a wise choice—MEGHANN MARCO

Interest Rising on Student Consolidation Loans [NPR]
(Photo: Rob Lee)

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