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Consolidating stafford loan

Ask Kim at askkim kiplinger. See Time to Repay Student Loans for more information about your payment-plan choices.

Rolling the two loans

If you choose a graduated repayment plan, you should be aware that time you take off from paying on the principal of the loan will likely increase the total amount of your loan. In addition, consolidation can cause borrowers to lose their benefits on unconsolidated loans. If you consolidate during your six-month grace period after graduation, you may qualify for a lower interest rate before repayment starts. Consolidating your federal student loans may streamline repayment by replacing several loans with a single loan and a single monthly payment, but it will not save you money.

Any other advice you can give me is appreciated. There are no prepayment penalties on federal or private student loans. Note that borrowers who consolidate their federal student loans often choose an extended repayment term.

Some lenders offer unified billing, where the borrower gets a single monthly bill for all their loans without consolidating. An unfortunate consequence is that they may take on too much debt to pay back after graduation.

You should also consider your total number of lenders, and should take stock of the other monthly financial responsibilities you face. If you are considering consolidating your graduate student loans, you are not alone. Payments are adjusted annually as the income of the borrower changes. Meanwhile, graduated repayment is tailored for the borrower who will require lower payments for the first few years and can make higher payments afterward.

Thank you Jules

Thank you, Jules Don't miss my free my weekday email newsletter with the latest tips and advice on how to beat debt and do better financially. Rolling the two loans together, however, will increase the rate on your new loans. They are at various interest rates.