Do I really have to consolidate?



Dear Joe, I did consolidate my student loans last year to lock in a lower interest rate. Does that mean that I will never have to worry about it again since they are raising interest rates every year? -- Rainy


Dear Rainy,
You did the smart thing by consolidating your loans last year when interest rates were at their lowest. Since you've locked in at such a great rate, I think all you need to worry about is making your payments on time. I doubt we'll see interest rates come down to the point where you will ever want to look at refinancing your consolidation loan.

For anyone who failed to take advantage of the opportunity to consolidate by June 30, 2005, be sure to consider it now. You have only until this Friday, June 30 to apply. The interest rate will not be as low as last year, but will certainly be better than the rate that takes effect on July 1, 2006.