Student Loan Consolidation July 1 Interest Rate Hike Nears

The federal student loan consolidation program isWith current student loan consolidation borrowers
heading down a path leading to interest ratewho still are in school can receive a 4.75 percent
increases. On July 1, 2006 interest rates areinterest rate that will be in effect for the life of the
expected to increase and fixed rates no longer willloan if the process is complete before July 1. A 2.75
be available.percent interest rate now is available to eligible
With the changes set to occur in approximately twoborrowers. This low rate includes applied benefits that
months it is important for college students totypically feature the use of Auto Debit and incentives
consolidate prior to the July 1 deadline. Following thatfor making 36 consecutive on-time payments.
date, the lives of student borrowers throughout theStudent Loan Consolidation Makes Life Easier
country easily could take a turn for the worse. WithWhen college students graduate they oftentimes are
all the expected negative changes, students couldleft with numerous student loan bills of differing
find it impossible to consolidate their loans after July 1.amounts all with high interest rates. After adding
By taking action now, student borrowers will save aeverything up, most students find they have
lot of money in interest - money that could be usedexorbitant monthly student loan bills. With the high
for more important things in their lives.price of college, the interest rates on loans make
Instead of paying for rent and the necessities of lifethings worse, especially for borrowers who do not
after graduation, borrowers who do not consolidateconsolidate their student loans. Those borrowers
their student loans could find themselves withshould take into consideration that they can
extremely high monthly student loan payments, notconsolidate student loans while in school or after they
to mention thousands more in interest than isgraduate.
necessary.The last thing students need after graduation is a pile
Student Loan Consolidation Can Save Thousandsof student loan bills to pay. Following graduation
However, by consolidating student loans before Julystudents have to find a job and a place to live. Along
1, borrowers can lock in a lower, much morewith rent and other everyday expenses, numerous
reasonable rate, which, over time, will savestudent loan bills with high interest rates will make
thousands. The lower monthly payment also willthings worse. Student loan consolidation will bundle
enable student borrowers to breathe easier knowingtogether all of a student's loans into one easy
they have extra cash to put toward other everydaypayment, which makes life simpler. In effect, it also
needs.will save thousands over the years.