| For Federal Student Loan Consolidation Last Date Is | | | | is also advisable to keep off from offers from banks |
| July 1st | | | | which will consolidate both federal and private loans. |
| The interest rate increase for federal student loan will | | | | Always keep both the loans separate. It is because |
| be to 1.84 percentage points by July 1 2006.Visit | | | | you will loose repayment discounts from the federal |
| Here | | | | loan if you combine these two. |
| This increase in interest rate is based on the auction | | | | Student loan interest rate to increase |
| of 91 day treasury bills on May 30 2006. The change | | | | Consolidation locks in Students Federal Loan Rates |
| in interest rate was due to new bill which was | | | | before July 1 Increase. Stafford Loan, carries a |
| incorporated into the recently passed Deficit | | | | variable rate that adjusts every July 1 by adding 2.3 |
| Reduction Act of 2005, S. 1932, and was signed into | | | | percentage points to the yield on three-month |
| law on Feb. 8 by President Bush. Congress cut $12.7 | | | | Treasury bills. The interest rate for the Stafford Loan |
| billion in student-loan subsidies in February, as part of | | | | is at 4.70 percent during in-school, grace and |
| the $40 billion Deficit Reduction Act, The legislation | | | | deferment periods, and 5.30 percent during |
| cuts a total of $12.7 billion to the federal student loan | | | | repayment. Stafford loans disbursed on or after July |
| program. This is second largest rate increase in the | | | | 1, 2006, the new rates will be fixed at 6.8 percent. |
| student loan history. | | | | The PLUS loan is at 6.10 percent PLUS loans |
| Lock in your federal student loan now | | | | disbursed on or after July 1, 2006 will be fixed at 8.5 |
| Studentloan borrowers have benefited from | | | | percent. By consolidating before July 1, students can |
| record-low interest rates for years.Experts in the | | | | avoid the interest rate hikes and lock in a low, fixed |
| industry are now advising students to consolidate | | | | interest rate for the life of the loan. A year ago, for |
| their federal student loans before July 1 2006 and | | | | example, consolidation loans were charging a mere |
| lock in at the current fixed rate which are charging as | | | | 2.875 percent. |
| little as 4.5 percent. Loan consolidation is the | | | | Graduating students who consolidate during their |
| opportunity to combine student loans together into | | | | "grace" period - the six-month window between |
| one big loan and lower the monthly payments. From | | | | graduation and the time they're required to start |
| an older variable rate debt you can now move to | | | | making payments on their loans will be able to lock in |
| fixed rate. If you're on track to graduate from | | | | a rate of 4.75%. In-school students can also take |
| college this spring, you should consolidate your federal | | | | advantage of loan consolidation now. After July 1, |
| student loans before July 1.If you graduated last year | | | | changes in the federal aid regulations will not allow |
| but did not consolidate till now, do it now. If students | | | | in-school students to be eligible for loan consolidation. |
| consolidate before June 30, the major benefit is that | | | | Only graduating students will be eligible. You should be |
| they can lock in at the current lowest possible | | | | making your first student-loan payment after finishing |
| interest rate available. It is a good idea to refinance | | | | school and not six months later. |
| when you can get a lower rate you'll save money. It | | | | |