Student Loan Consolidation

[dogmom327]

My student loans have just come into repayment and I need to get them consolidated (for my sanity if nothing else!). Interest rates are pretty low right now (most of them are around 2.5% with one at 6%) so I'm thinking I can do fairly well with a consolidated loan. Right now my goal is to get my minimum payments as low as possible. I'm self employed and although I will eventually pay the loan in full (hopefully sooner rather than later!), for the next year or so, I need small payments (although for the next month or two I'm making the normal payments so I can get this worked out).

Here's what I'm thinking:
--Consolidate and get a loan for the longest possible time line (the amount of my loans qualifies me for a 30 year option) with the lowest interest rate
--Opt for a tiered payment system where I would have smaller payments for the first 10 years and larger payments later.

Please no flames--we are planning to have the loans paid in full in 10 years and although I'd rather I didn't have student loans at the moment, they are what they are.

Besides the terms and interest rate, I know I need to ask about the loans being forgiven if I were to die and whether there is a consolidation fee. Anything else I need to ask?

Should I just go through the Feds or start comparing private companies? Know any good ones?

Thanks!

[K1329]

If you are eligible, you might want to consider consolidating under the federal Direct loan program. They have income based repayment options and loan forgiveness options that the private lenders don't have - and congress will likely pass some more programs that benefit borrowers in future years.

[dogmom327]

Thanks!