consolidation ford loan student
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Deadline on student loan savings nears
Attention college students, parents and new grads: It's time to stop trashing those student loan consolidation letters along with the credit card offers.
They're trying to save you thousands of dollars.
There is no catch here: Anyone holding a federally-backed student loan Stafford loans for by students and PLUS loans for parents will see their interest rates rise by 1.84 percent as of July 1.
The good news is that these loans can be consolidated and the current rate locked in if borrowers act by June 30.
"The bottom line is that students ... need to be contacting their lender immediately," said Shann Doerr, financial aid director at Quincy University. "It can make a huge difference."
Lenders are offering a dizzying array of consolidation packages, some with rates as low as 2.5 or 3 percent.
More consolidation ford loan student info
Student loan interest rates set to increase
Today is the last day student loan holders will have to consolidate their debt without feeling the hit of the nearly 2-percent increase in interest. The Federal Stafford loan rate will rise 1.93 percent July 1 and parent loans for undergraduate students (PLUS) will rise 2.4 percent, marking the largest jump since 2000. The change stems from a new bill that was incorporated into the Deficit Reduction Act of 2005, S. 1932, according to a press release from the Montana Guaranteed Student Loan Program.Ron Muffick, director of business relations and programs for the MGSLP, said, "Because of the interest rate change effective July 1, I encourage borrowers to contact their lenders to explore all of the options for repayment including consolidation."The average student debt for a Montana borrower is $20,000, quite less than the national level of $50,000, according to the American Council on Education."The rate increases mean higher interest payments for students and graduates over the life of their loan," said Jim Stipcich, president of Student Assistance Foundation.