Protecting Against Student Loan Consolidation Interest Rate Hike in July
The Budget reconciliation legislation in 2005 bearer of bad news for college graduates in 2006. The law ushers in a record increase in student loan interest rates, forcing college students and college graduates to pay thousands of dollars more for student loans when the college was never higher. However, new graduates can consolidate their student loans today to protect themselves from rising rates.
Federal Stafford loans, currently one of the most affordable student loans federal, will rise from the lowest interest rate 4.7% (for students currently registered) to 6.8% on July 1, increased 45%. Parents are not the best, PLUS loans, currently a competitive 6.1%, will increase to 8.5% on July 1, an increase of 39%. Loan consolidation allows students to lock their interest rates today to prevent the July 1 increase from affecting them. In addition, consolidation loans reduce monthly payments and simplifying the financial graduates’ by combining all their student loan bills into one payment.
Jonathan Rudy, director of student loan consolidation in www.StudentLoanConsolidator.com, stating, “No other industry, even the red-hot market real estate, has been seen as a double-digit rate increases in just one year. The family will probably find that pay for college without busting the budget will be more difficult than ever Statements will freeze interest rates are now graduates., protecting them from these laws. ”
new law also prohibits students registered at this time of consolidation, as well as prohibiting married couples from consolidating their loans together, and prohibits students from consolidating more than once.
“The only viable option for students who want to protect themselves from rising rates – except for those who can repay the loan in full July 1 – is student loan consolidation,” said Mr. Rudy.
“However, it is important that students and parents consolidate their loans now, as soon as possible, to ensure that they have finished their statements no later than 1 July.”
Mr.Rudy encourage students, even those currently registered, to submit a free application for student loan consolidation immediately. Parents with PLUS loans are also encouraged to file now. To file a free application for consolidation, students and families can visit www.StudentLoanConsolidator.com or call toll free (877) 328-1565.
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