What is the scoop on consolidating while in school?
Borrowers who consolidate eligible loans while in school, may receive a lower interest rate and a six-month grace period. The difference between the borrower’s interest rate during their in-school or grace period and during the repayment period can be as high as 0.6 percentage points. In order to be eligible for an in-school consolidation loan, borrowers must be attending school at least half-time and include one FFEL or Direct Loan in an “in-school” period (see “Who is eligible for a Direct Consolidation Loan” for complete eligibility detail). In-school consolidation loans are only available through the Direct Consolidation Loan Program. The FFEL Program cannot consolidate loans for borrowers until they leave school and are in grace or repayment. If the borrowers’ enrollment status changes to less than half-time after applying but BEFORE the first payoff disbursement, the loan immediately begins its grace period. If the borrowers’ enrollment status changes to less than half-time AFTER
