Meharry Loan Consolidation Primer

4. Personal Finance Expert’s Advice - Student Borrowers Must Consolidate Now Terry Savage, a registered investment advisor, nationally known expert on personal finance and a regular television commentator on CNN, CNBC, PBS, and NBC on issues related to investing and financial markets wrote in her November 14, 2005 TheStreet.com column, Student Borrowers Must Consolidate Now.“It was only last May that the Department of Education ruled that borrowers need not wait for graduation to consolidate. And thousands of current students immediately stepped forward to lock in last year's rates, which were the lowest in history. Unfortunately, not everyone found out about this break, and millions didn't take advantage of it. Now, if pending legislation passes, they'll miss a great opportunity. Interest rates are on the rise, and the rates set in July are likely to be higher. Ordinarily, I'd wait until springtime to bring up the subject of student loan consolidation. But, given the pending legislation, I am recommending that all students -- even those still in school -- move to immediately consolidate their existing loans at today's low rate of 4.75%. Of course, current students will have to pay next year's rates on subsequent loans -- and may ultimately want to consolidate those loans. But consolidating at current rates on whatever loans you already have could save you a small fortune in interest.”

The December, 2005 issue of MONEY warns: Don’t Procrastinate – Consolidate.

“If, like millions of college students, your child has taken out federal Stafford loans, investigate consolidating the debt by mid-2006 at the current rate of 4.75%. Unless Congress intervenes, those loans are slated to be fixed at 6.8% on July 1. If a graduating senior with the four-year maximum of $17,125 in Stafford loans takes no action, she’ll have to pay $197 a month for 10 years to erase the debt. But if she consolidates early, says Gary Carpenter of the National Institute of Certified College Planners, she could stretch her payback from 10 years to 15 and pay only $133 a month, incurring minimal additional interest expense.”