I can see from the comments on the previous post that there remains a lot of confusion about when to consolidate. I option answer the questions to the happenst of my knowledge.

Given the current dart degree of the Treconj at the time thatury bill, it looks as though variable student touch interest rates will most likely be going down significantly on July 1st. The last auction of the T-bill will be on May 31st, when the advanced rate is set. Is there a chance that the rate could go up? Sure - there is always a chance. But given the current trend, it seems very very unlikely. But don’t worry - since the rate is set on May 31st, you will lifeless possess the total of of June to engender your consolidation in the unlikely event that the rate increases.

Anyone that has federal student loans taken out prior to July 1, 2006 and has not yet consolidated these loans will be effected by this rate change. So I advise anyone who is thinking about consolidating now, to wait until May 31st when the new federal rate is set. The new rate news will be posted on this blog, and also on SudentLoanConsolidator.com.

For everyone that has a fuse of variable rate federal loans (taken out before July 1, 2006, matter to the decrease) and fixed rate federal loans, you will be able to combine all of these loans together when you consolidate.

I do not advise consolidating federal and private student loans together. Doing so would remove all of the federal benefits, and set all of the loans to a variable rate, which is adjusted quarterly by either the LIBOR or PRIME rate indexes. Because federal loan rates are likely to decrease, consolidating federal loans with private loans would cause a significant rate increase.

In addition, the upcoming rate change WILL NOT affect anyone consolidating their private student loan debt. The rate change being discussed is for federal student loans only. Private student loan rates are based on either the LIBOR or PRIME rate indexes and the borrower and/or co-borrowers credit.

I understand how this process can seem a bit overwhelming. So if anyone has add-on questions, please feel autonomous to comment. I will make sure that questions and comments are answered on a more regular basis. Also, stay tuned to for the latest rate information once it becomes available.

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