How to consolidate student loans

Q: I hear this is a good time to consolidate my student loans. How would I go about that?

A: Good time is an understatement. Picture you're driving down a highway and see the sign that says "Next gas station: 500 miles." That's the situation for student loans.

Rates for federal Stafford and PLUS loans are reset every year based on the result of a Treasury bill auction, and this year it looks like the rate is going to go up about 2 percentage points on July 1. You need to get in your application to consolidate before then to lock in the current rate, which is 2.875 percent for most loans.