This is why student loan consolidation appears as such an attractive solution, but there are things you should know as you consider this approach.
The definition of loan consolidation, in a nutshell, is: One payment, one lender.
This is the case if you live in: You have a grace period following graduation before you have to start repaying your government loans whether they are consolidated or not. In that timeframe, you'll receive paperwork regarding your loans so you know how much you owe, how much interest you're paying and where to send payments.Take note that interest starts accumulating upon graduation.In a manner of speaking, you can consolidate private student loans held with a bank.For example, if you took out a loan or line of credit from another institution but found that CIBC had a more competitive interest rate, you could apply for the Education Line of Credit to satisfy those debts.Similarly, the Teacher Loan Forgiveness Program is available for teachers who work in schools that serve low-income families full-time for five consecutive years.
These are clearly great programs for people who choose careers in public service or education, but if that’s not you, they won’t do you any good.It's paramount that you know where your loans came from so that you can be prepared to repay them in a timely fashion.You may receive correspondence from the government regarding student loan consolidation, and it's also important that you understand that process and what it means to you.The possibility of Student loan consolidation depends on the province or territory in which you live.If you took out both federal and provincial loans, they will automatically consolidate if you live in: These provinces allow you to apply for both loans with one application, and after graduation, they consolidate the student loans via the Integrated Student Loans program. There are some provinces and territories that only offer one type of loan, either federal or provincial/territorial, so you'll only have one loan to repay anyway.Federal loans carry a six-month grace period so there is time to develop a plan for dealing with them.