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The grace period gives you time to get financially settled and to select your repayment plan. Note that for most loans, interest will accrue during your grace period.

You will make your payments to your lender, the organization that made the loan initially.

Many people are understandably hesitant to borrow money.According to Sallie Mae, which owns or manages student loans for more than 7 million borrowers, the new repayment rate for student Stafford loans will be set on July 1 at 4.06 percent.That's nearly two percentage points less than it has been for the past year.Consolidation may be able to save you money over the long term. If you consolidate your federal student loans into one monthly payment, you can often reduce your monthly payment by as much as 52 percent.Student loan consolidation can be a good debt management tool and Sallie Mae representatives can help you determine the best plan for your situation.Keep in mind that your loan may have a grace period.