Nassirian agrees that consolidation loans are “highly advisable.” But he says there’s little incentive for students to act on the loans this summer since they generally do not begin repayment until they leave school.
Students also are not very price-sensitive to interest rates, he says, since their first goal is to obtain the necessary college funds. In addition, many youth tend to “exaggerate their earnings potential” in the years after graduation, Nassirian says.
Despite recognizing the benefits of consolidation loans, Berkley is still unsure whether she will combine her loans in hopes of a lower rate. Her concern is whether she can get a six-month grace period from repayment on a consolidation loan after graduation. Most of her existing loans carry this benefit, which she thinks will give her more time to find a good job.
“This is my education I’m investing in,” she says.
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