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Scholarships & Aid

Paying Off Your Undergraduate Student Loans:
The Six-Month Grace Period = Opportunity for Big Savings

The day finally came. It was the moment that you have been waiting for. The past four years seem to have conjoined into nothing more than one huge blur of quirky professors and impossible exams. All of the seemingly endless headaches and the occasional heartaches that have been experienced throughout your college career have become part of an expansive collage of scrapbook memories. The day that you thought would never come not only arrived, but, now it's a distant memory.

Now that graduation has past, it is time for you to face the "real" world and do things that you thought could never be accomplished. Many exciting journeys lay ahead like getting that first job and moving away from home. However, with the exciting journeys come some pretty big obstacles like paying bills, buying a home and paying off those student loans that you racked up while pursuing your higher education.

You may be thinking: "why should paying off my student loans even cross my mind right now?" After all… everyone knows that you do not have to begin paying off student loans until six months after graduation.

Despite popular belief, your six-month "grace period" is actually the best time to begin repayment of your student loans. When in a grace period, student loan interest rates are actually over a half of a percent lower than when you begin repayment. Recent graduates can benefit greatly from this discounted rate through the Federal Consolidation Loan Program. Student loan interest rates are variable, meaning they change from year to year. Once students graduate, they can consolidate their student loans, which allows them to take advantage of several benefits, mainly locking-in their current interest rate. In other words, the discounted grace period interest rate can be maintained until the loan is paid off.

If student loans are consolidated while in their grace period, borrowers are able to enjoy up to a sixty percent savings each month on their payments. You do the math; sixty percent is over half! You could save over half of the money that you would have spent on your student loan payments if you consolidate your loans while they are in their grace period. This savings could add up to hundreds of extra dollars in your pocket each month.

The Graduate Loan Center can help you to enjoy these savings and the many other benefits of The Federal Consolidation Loan Program. When you consolidate your student loans with The Graduate Loan Center you can:

Lock in a low interest rate.
Make one low monthly payment.
Choose from a variety of repayment options.
Receive an extra .25% interest rate reduction for automatic monthly withdrawals.
Enjoy all of the above benefits at absolutely NO COST!