It’s almost July, and if you have student loans, your interest rates are about to go up. It’s probably a good time to consolidate your loans and get a low, fixed interest rate.

If you have loans with Sallie Mae, I recommend not consolidating directly with them. See, when you consolidate your student loans, you get a fixed rate which is basically an average of the rates on your loans. Sallie Mae, however, looks at the interest rates on your loans when you got the loans. So you may currently have low interest rates and want to consolidate at a low rate, but if the rates were higher when you got the loans, your consolidated rate will be based on those higher initial rates.

So if you’re going to consolidate your loan, and it’s not a bad idea at all right now, try some other loan service to consolidate with, like, say, the government’s own Direct Consolidation service. I just applied with them, and they confirmed to me on the phone that they base your consolidated fixed rate on the rates on your loans at the time you apply, not the initial rates like Sallie Mae uses for their consolidation. Use their online calculator to figure out what your consolidated rate should be.

But if you’re going to do it, do it now; don’t delay. The application process takes a while, and we’re almost halfway done with June! You’ll need to print out and mail the application, or if you want to sign electronically you’ll have to apply for a PIN first and wait 3-4 days to get the PIN before you can apply to consolidate. Other consolidation services will also likely have a somewhat lengthy process.