I have a question about the timing of loan consolidation/applying for IBR.  I graduated in June and my loans are in their grace period; repayment begins in December.  I have one FFEL loan, so I’ll need to consolidate my loans.  I understand that I can also choose IBR at the same time that I consolidate my loans.

I know that I can include a grace period end date in my loan consolidation application and that the application won’t be processed until within 45 days of the grace period end date (http://loanconsolidation.ed.gov/appstatus/saftrapply.html).  With that in mind, does it make a difference if I apply for consolidation now?  Is it better to wait a month or two before sending the application?  I don’t want to wait too long, but I also don’t want to send the application in too early.

Thank you for your help!

Bethany

I hear complaints from borrowers all the time about the timing of this process, and it seems to go rather inconsistently.  The problem is that repayment begins upon consolidation, and there is reason to be concerned that the end of grace date will not necessarily be noticed.  The reality is you can’t control it well, and you’re probably fine either way.  In any event, keep an eye on the process.