Meharry Loan Consolidation Primer

[1] you graduated before July 1st 2005 and:

	a. consolidated b. did not consolidate c. did not consolidate with a single or multiple lender

Did NOT Consolidate:

Unless you have a carefully considered, documented and verified reason NOT to consolidate, then you should consolidate now, preferably before the end of your six-month grace period!

May and June 2005 graduates who did not consolidate before July 1st, may find that it’s still a good time and a smart move to lock in current low rates, particularly in light of anticipated continued interest rate increases and legislative changes. Interest rates for most Federal Stafford loans maintain the current lower in-school rate of 4.70% during grace and deferment periods. The Post-July 1st 2005 interest rate automatically and without notice increases 0.60% to 5.30% at the end of your six-month grace period following graduation.

If you wait until the expiration of your six-month grace period to consolidate, the consolidation interest rate will increase from 4.750% to 5.375% a 0.675 percentage point (13.16%) increase, which can cost nearly $14,000 in additional interest payments on a full-term $100,000 loan.

For more information and to discuss your options, contact an Meharry Loan Consolidation Program personal consolidation counselor at 1-800-741-4704. Be sure to reference Meharry when you call.