<p>I can't seem to find anything regarding one aspect of consolidation. When you consolidate another commercial lender steps in and pay off all of your federal loans ( including fixed Perkins, and variable Staffords I think ) and put itself as the new lender. Please correct me if I am wrong. Now having said that, do the original in-school benefits like federal subsized interests ( no interests accum while in school ) carry over in the new "consolidated" loan ?</p>
<p>This canbe an issue if the new lender does not subsidize but capitalize (add int to principle ) while the student is in school. For example, if your student have the typical William Ford subsidized (which is Stafford by another name ? ) and a Perkin loan and your student plans to go to grad school, you are looking at 6-7 years in-school. The interests if not subsidized would be substantial when (capitalized) added to the principle. So it will offset any perceived benefits from the lower rate. </p>
<p>Would someone care to comment about this, I appreciate it very much.</p>