4 Reasons to Consolidate your Student Loans On or Before July 1st 2006
Every year, student loan interest rates are reconfigured on July 1st. In recent years, this date has come and gone with no cause for alarm, but this year is different. As part of a plan to heal the nations $40 billion budget deficit, the Senate passed a plan to cut $12.7 billion from the federal student loan program between 2006 and 2011. The impact on students is a drastic interest rate hike on all federal student loans including the Stafford loan, the PLUS loan, the Consolidation loan, and the Perkins loan.
1. Student loan interest rate hike
After July 1st, the interest rate on new Federal Stafford loans will jump from a variable 4.7 percent to a fixed 6.8 percent while PLUS loans will increase from a variable 6.1 percent to a fixed 8.5 percent. The way to avoid these skyrocketing interest rates is to lock into todays low fixed rate by consolidating your loans.
2. Last chance for in school consolidations
Under the new legislation, students that are still in school wont be able to consolidate their loans after July 1st, 2006. Its more important than...
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