The good news is that the Department explains on its web site that if any loan you want to consolidate is still in the grace period, you can delay entering repayment on your new Direct Consolidation Loan until closer to your grace period end date.You can indicate this when you apply, and the consolidation servicer will wait to process your application until the appropriate time.
Consolidation was previously available to borrowers while they were still in school. Congress also eliminated joint consolidation for spouses, effective July 1, 2006.APPLYING FOR DIRECT LOAN CONSOLIDATION The Department generally requires all borrowers to apply for Direct Loan consolidation using the web site. It is very important to review this sheet and check to make sure all of the loans you wanted to consolidate are included in the new consolidation loan.(Click espanol to find a Spanish version of the on-line application). Be sure to meet the deadline for responding if you think there are problems with the consolidation or if you have decided you do not want to go forward.Let’s say you have a ,000 balance on a fixed-rate credit card with a 16% APR, and your goal is to pay it off within three years.Your monthly payment would be about 7, while your total interest cost would be about ,972—and that’s if you don’t continue to charge new credit card debt.