consolidate private student loan

July 1 deadline for students to consolidate loan debts

Consolidate now. That's the short fix and the best advice for graduates who owe money on student loans. They need to lock in the lowest possible rates before July 1, when rates for the popular Stafford loan will jump to 6. 54 percent.

The more complicated fix: The nation should re-examine its system for how students borrow money for college. The system wastes money, and the Office of Management and Budget has the numbers to prove it.

Student loans made through private lenders cost the federal government 10 times more than direct loans provided by the Education Department, an OMB report released last year found. Some students borrow directly from the government, but many borrow guaranteed student loans through private lenders such as Sallie Mae. For every $ 100 spent on student loans, the government spent only 84 cents for direct loans, compared to about $ 12 for government-guaranteed loans from private lenders, the study found.

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Interest Hike Looms On Student Loans

RALEIGH, N.C. -- Interest rates on government-subsidized student loans will go up nearly 2 percentage points on July 1, so some education funding experts are urging people to consolidate outstanding loans.

"This jump is really going to hit the pocket of students," said Julia Leggett, a political science major at Meredith College, who expects to owe about $35,000 by the time she graduates.

"You do have to incur a lot of debt when you go to a private college, and you want to be competitive in the work force. So, you search for the best institution and you search for loans," Leggett said. .

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