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Welcome to Knowledge for College brought to you by Chase, and thanks for joining us. This series of videos provides valuable information on the many important steps of going to college and financing an education.

Hi, I’m Chelsea Richardson. When you’re ready to begin repaying student loans, you may wonder what the best payment option is. Ken Butler will show us how federal and private student loan consolidation can help.

As you near the end of your college years, you may want to look into loan consolidation, especially if you have more than one student loan. Let’s talk about what consolidation is, how it works and why you might want to consider it when you enter repayment.

The biggest advantage of consolidation is that it may help keep your monthly payments more manageable.

This is especially important when you begin your career and your starting salary may be stretched with payments such as a car, rent, insurance and student loans.

The consolidation loan usually offers a lower monthly payment by extending the loan repayment period.

It’s important to know that while extended repayment can decrease your monthly payment, it can also increase the total interest you’ll repay.

If you have both federal and private student loans, you might wonder if you can consolidate them together. You can consolidate federal loans and private loans separately into two consolidation loans. That way you’re sure to keep your federal benefits.

You can apply for a consolidation loan any time after you graduate or leave school, as long as you’re in your grace or repayment period. Once you consolidate, you begin making payments immediately. So you might want to consolidate toward the end of your grace period. There may be times when consolidation may not be right for you. Talk to your financial aid counselor to find out what works best for your situation.

You can learn more about federal student loan consolidation at StudentAid.ed.gov . You can find information about private student loan consolidation at ChaseStudentLoans.com.

Knowledge for College is brought to you by Chase to help you better understand college financing. If you have any questions on your specific financial situation, consult your own financial advisor or the financial aid office of your school.

Important Information: Federal Consolidation Loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan may be extended from 12 to 30 years. The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan, the total amount of interest paid over the lifetime of the loan is increased.

Chase Private Consolidation Loans are subject to credit approval. Other terms and conditions apply. Federal loans are not eligible for this program. Please visit ChaseStudentLoans.com for details. Chase services its Private Consolidation Loans and does not sell them to another lender. This information was correct as of 11/01/08 and is subject to change. Contact Chase for the most up-to-date terms.

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