government student loan payment
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Students rushing to meet loan deadline
Students and graduates are running out of time if they want to refinance college loans before an interest rate hike this weekend.The federal government adjusts interest rates on its student loans each July 1 based on a formula tied to the yield on short-term Treasury bills.If loans are consolidated before the Friday at midnight deadline, the interest rates will remain fixed.A consolidation loan allows students to combine their federal loans into a single loan with one monthly payment.The variable rate on a common Stafford loan dipped to as low as 2.77 percent for students in the 2004-2005 school year and 3.37 percent for graduates already making repayments. Those rates rose last year to 4.7 percent for students and 5.3 percent for graduates.On Saturday, the rates will shoot up to 6.8 percent for students and 7.14 percent for graduates.
More government student loan payment info
Student loan default high
Keeping up with student-loan payments is not a priority for about one-quarter of the students who borrow from the federal government to fund their education.
About $2.6 billion in federal student loans is currently in default, said Heather Hamilton, spokeswoman for the Canada Student Loans program.
The default rate was just over 25% for 2004-05, she added.
That doesnt necessarily mean (the students) have walked away from it, it means theyre late, said Hamilton.
A loan that is 270 days past due is in default. .