consolidate texas student loan
Click a Flag to Translate the page
 |
 |
 |
 |
 |
 |
 |
 |
 |
Students Rush to Consolidate Before Rates Increase
"We have seen an increase in student loan consolidation activity and we anticipate a rush between now and midnight June 30th," said Mari Mann-Silva, vice-president of Financial Operations of the not-for-profit Council for South Texas Economic Progress (COSTEP). "Loan consolidation incentives along with the July 1, 2006 rate increase are driving the market," Mann-Silva added. "COSTEP offers incentive plans based on loan amounts. The following is a recap of those incentives: Student loan amounts of $12,500 or greater will receive a 1% interest rate reduction at the time of consolidation and an additional 1% interest rate reduction after 36 on time payments; loan amounts that are between $5,000 and $12,499.99 will receive a 1% interest rate reduction after 36 on time payments; all student loans are eligible to receive a .25% incentive for participating with the SUREPAY(SM) program."
"The end result is that many students will be paying thousands of dollars more in interest rates unless they consolidate now," said Patricia Beard, president of COSTEP.
More consolidate texas student loan info
Clock is ticking on student loans
It's crunch time in the student loan world. Borrowers have just one week left to avoid a spike in payments by locking in interest rates.
But many borrowers are still undecided on whether to refinance their debts by converting traditional student loans — which have variable rates — to a single, fixed-rate loan. They must apply by next Saturday.
"I can't decide what to do," said Lisa Blazer, a doctoral student and assistant vice president for student financial aid and enrollment services at the University of Texas San Antonio. Blazer has unconsolidated loans from her master's degree.
"If I were an undergraduate who doesn't have a job, I'd also consider whether I'd be able to make the payment 30 days after graduation."
Blazer and many other borrowers face a combination of rising interest rates and legislative changes that will alter the student loan landscape July 1.