Student loan consolidation

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A student loan overhaul has taken lending away from private financial institutions and brought it to direct lenders. Although some low-income earners might benefit from the increased availability of funding, most students who are enrolled in college won’t gain from this change: Students and parents should be aware of one provision in this change: From July 1, 2010, to July 1, 2011, they can consolidate multiple school loans into one direct loan. But that nullifies the 6-to-8-month grace period that they otherwise would have after graduation to start to pay back the loan, warns Mark Kantrowitz of FinAid.org.