Loan tips for new college grads | Students Loan Conslidation

Before getting giddy about a first paycheck, it will pay to you to pay attention to your student loans. Here are some things for new grads to watch -- including that grace period.

Congratulations, college graduate!

Expect a mailbox full of missives to help you transition from the college campus to the real world: congratulatory cards (with checks enclosed) from family and friends, a few job offers and plenty of enticements from lenders eager to handle your student loans.

Although the first two are certainly more welcome, it pays to spend time considering the latter. More than two-thirds of graduates leave college with student-loan debt, according to the Department of Education. Their average tab: $19,200.

In recent years, as the variable interest rates on the Stafford loan dipped to historic lows of 2.77% (3.37% in repayment) in 2004, student-loan advice for recent graduates could be summed up in a single word: consolidate. Not so for more recent grads, who face current rates of 6.8%.

"The use of consolidation to lock in a low rate no longer applies," says Mark Kantrowitz, the founder of FinAid.org. "Students have to be more proactive about getting the best deal." http://studentsloanconslidation.blogspot.com/

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