But how a graduate will know, what are his costs during the coming years, if he has not got any work? Good question, but the student loan consolidation has to be made during the grace period, i.e. during 6 months after the graduation.A borrower can solve this problem by taking as long payment time as possible with the lowest possible interest rate. Later he can decide, if he wants to pay the loan sooner, because in most cases it is possible.1. 4 Key Questions.When you negotiate about the student loan consolidation, you can keep these four questions in your mind. Is there any origination fees, what is the interest rate, how long is the payment time and is there any pre-payment penalties?2. Is Longer Payment Time Reasonable?I understand if you think, that the longest possible payment time is the best one, but think a little bit more. The longer payment time means, that you will pay more, because the amount of the interests will be bigger. But as said, you can decide this later after you have got the touch about your monthly expenses.3. Can You Get Money Cheaper?As a graduate you have not so strong positions in the loan talks, but they are still stronger than what you had, when you were a student. It helps, if you have taken care of your payments and your credit score has improved. But in most cases during the student loan consolidation, the credit score is better, which means lower interest rates.4. What About Your Parents Student Loans?Good question, because the parents can also have needs for lower monthly payments. Yes, they can also consolidate student loans, which they have taken for their children. However, they have to do the consolidation separately, i.e. a graduate and his parents cannot put their loans into one loan.5. Can You Pay Sooner?In most cases yes. If you remember one of the four important questions was the allowance for the pre-payments without penalties. This is quite important thing, because it allows the earlier payments and make the decision making easier during the pondering process.One potential benefit is the removal of the co-signer. This will save the parents or a relative from the future liability. This is possible after 24 to 48 months of making regular payments.
