consolidate government loan student

Counting Down the Hours Until Student Loan Deadline

PASADENA, Calif., June 27 /PRNewswire/ -- As many student loan borrowers already know, interest rates for all federal student loans will be increasing by around 2 percent on July 1.

For most student and graduates with education loans, this increase will cost tens of thousands of dollars in added fees and interest.

However, many savvy borrowers have taken advantage of a free government program to save this money and eliminate a few financial worries, as well: student loan consolidation.

Student loans can be consolidated until 11:59 p.m. on Friday, June 30. Consolidation allows borrowers to lock in a low interest rate for the life of their loans and make just one, low monthly payment for the duration of the repayment period.

As the federal deadline approaches, student loan consolidation companies are being swamped with requests for information on this program.

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Era of low-interest rate college loans coming to an end

College students with multiple government-backed loans may want to consider consolidating them before interest rates go up July 1, says Indiana State Universitys director of student financial aid.I think theres a good potential for savings right now, said Tom Ratliff, ISU financial aid director.Current interest rates are very attractive, he said.Students will have to act fast, however.An era of low interest rates on federally-backed college loans is coming to an end. A combination of rising interest rates and legislative changes to the student loan program are affecting repayments. Rates on existing Stafford loans government-guaranteed student loans change annually and are tied to 91-day Treasury bills.On July 1, interest rates will increase from 5.3 percent to 7.14 percent for repayment of Stafford loans, which are variable rates.For PLUS (parent) loans, interest rates on existing variable rate loans will jump from 6.1 percent to 7.94 percent.There is a very substantial savings for parents, who consolidate, Ratliff said.Consolidation is an option for students who have multiple loans and at least $7,500 in outstanding debt, Ratliff said.

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