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Kevin McCormally: I am Kevin McCormally of Kiplinger's and I am here with Jane Clark, an Associate Editor of Kiplinger's Personal Finance magazine to talk about student loans.
Jane I know that college students are swamped with offers to consolidate their student loans. Is that a good idea?
Jane Clark: Well actually, students who are in school can't consolidate their loans anymore, that's the change. So they have to wait until they are out of school to consolidate their loans.
Kevin McCormally: Okay, so recent graduates still get the offers from lenders to consolidate their loans, what's the advantage of that?
Jane Clark: Well, the students who still have variable rate loans, can wait to see if the rate goes down and lock in a lower rate. So they don't have to do that but they might be able to get a break on there.
Kevin McCormally: It's a consolidated loan gets you out of the variable, so you're protected against rates going up, you're locked in a fixed rate.
Jane Clark: Right, that's correct.
Kevin McCormally: Jane, are there any other advantages to consolidating?
Jane Clark: Yes. Actually lenders do offer some discounts to get your business. So, for instance you might be able to get a discount on the rate for automatic debit and so you just kind of have to shop around to see where you can find.
Kevin McCormally: Okay. Thank you Jane.
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