Not necessarily. If you are still in school, you can place your new consolidation loan into an in-school deferment status (get the form here). By doing this, you will not have to make a payment until you are finished with school. Once you consolidate, there will no longer be a grace period; however, locking in a lower rate could be more valuable over the life of the loan than the grace period. Additionally, during the in-school deferment, the government will still pay your subsidized loan interest.