| The Federal student loan program has benefited | | | | higher than adjustable rates. Those considering |
| thousands of college students in the forty years | | | | consolidation might wish to convert their loan to a |
| since it was introduced. Interest rates for the | | | | fixed rate. Depending on the amount of the loan, |
| program have historically been quite competitive, and | | | | borrowers may extend their loan terms to as long as |
| the program has allowed many people to acquire a | | | | 30 years. |
| college education who otherwise might not have | | | | There is also legislation pending in Congress that |
| been able to afford one. | | | | would change the Federal loan system so that all |
| At the moment, interest rates on Federal student | | | | future loans are adjustable rate, with no fixed rate |
| loans are the lowest in history, but that is about to | | | | option. This will save the government money by not |
| change. On July 1, 2005, the interest rates on Federal | | | | allowing students to lock in long-term loans at low |
| student loans will rise, due to an increase in the price | | | | rates during times of increasing interest rates. |
| of Treasury, bills, to which the interest rates on | | | | Students who wish to obtain a fixed rate loan may |
| student loans are tied. | | | | not have much longer to do so. |
| While an increase in interest rates is seldom viewed | | | | Rates will vary slightly from lender to lender, and the |
| as a good thing, knowing about it ahead of can be | | | | market for loan consolidation is quite competitive. |
| helpful. Between now and June 30, new graduates or | | | | Those wishing to consolidate their loans should |
| those who have been repaying existing loans can | | | | consider shopping around for the best deal while time |
| consolidate their student loans at current rates. The | | | | permits. |
| rates currently vary, with fixed rates being slightly | | | | |