Come July 1, 2006 the rates on student loans will be jumping around 2 percent so now is the time to consolidate and lock in your existing rate. That increase is almost a 50 percent jump in interest for most borrowers, so pursue consolidation with a new lender or refinancing through your existing lender to lock in the current lifetime-low rates.
Here is an article from the Christian Science Monitor that talks about the change.
If you miss the July 1 deadline, you will be kicking yourself for up to 10 years as you pay back your student loans with a higher rate than you had to. Don’t delay, lenders are probably being overwhelmed with consolidation requests. So, stop reading right now, and start the consolidation process. You’ll thank me for it.
As far as where to consolidate, I would start with your existing lender. If you don’t like your current lender, you can look at www.loanconsolidation.ed.gov or Sallie Mae for more information.
Yep, I found out about this about a month ago and made sure I consolidated everything. Another tip is that if you have all your loans through one finanical institution, good luck trying to get it moved somewhere else. Luckly, the banks I use for all my banking purposes recently merged so I no longer have a problem. I’ve also heard not happy things about Sallie Mae. Though nothing specific, I’ve had too many people tell me not to go through them.