The best time to consolidate is during your last semester of school, after the last disbursement of your loan while you are still enrolled. Most students do not begin consideration of consolidation until graduation when their lenders are contacting them regarding repayment of their loans. By consolidating before the end of the last semester enrolled, the student will ensure that their six-month grace period is preserved, and the lowest possible interest rate is secured. After you complete and submit the packet, it generally takes 90 days to complete the consolidation process. The result is a letter informing you that you have a Federal Direct Consolidation Loan.
Convenience is the most popular reason to consolidate.
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