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It is possible to consolidate most student loans while they are in a grace period. Borrowers who consolidate loans in grace may even receive a lower interest rates if they are consolidating variable rate loans. Borrowers should not apply too early in their loans’ grace periods, because after the student loans have been consolidated, the grace period is considered over. After this point the borrowers receive their first bills within 60 days after the loan consolidation. Borrowers should wait until at least 3 months into the 6-month grace period before applying for a student loan consolidation.
The timing is an important factor for student loan consolidation application submissions. Borrowers who have student loans with fixed interest rates may consolidate them in the grace period, but there is no benefit to do so since the interest rates for in-grace and in-repayment are the same.
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