Managing Your College Loans

But if you're the typical student, graduating with about $17,000 in federal loans, consolidation is wise. Stretching out the payments while lowering the interest rate can give you the wiggle room to knock down the credit-card bills that inhibit saving. Don't make a move before July 1--unless you apply through a consolidator like Collegiate Funding Services www.cfsloans.com) which is accepting applications that it won't process until then. And although these rates will be in force for a year, if you're in the six-month grace period in which you don't have to pay anything, you have to time things carefully. Consolidating early can bring your respite to an early end. But acting before it expires can save you more than a half of a percentage point in repayment. So bide your time. Then pounce. --With reporting by Cybele Weisser