Student Loan Consolidation Rates Decrease Slightly, But Fixed Rates May Not be Available in the Future

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With no credit checks, fees, or early payment penalties, there's absolutely no reason for graduates not to consolidate their loans. However, graduates need to act now. If the law changes late this year or next year, and graduates have not completed their consolidation, they may not be able to lock in fixed rates any longer.

With the conclusion of the final May 91-day Treasury Bill sale, student loan rates for the coming academic year (July 1, 2004 - June 30, 2005) have been set. College graduates currently in their six-month post-graduation grace periods will not see a difference in consolidation rates, nor will parents with PLUS loans; for those graduates making payments, the new consolidation rate drops from 3.5% to 3.375% effective July 1. For a student with $50,000 in loans, this will result in a savings of approximately $785 over the life of the loan.

There is a dark side to the new lower rates, however. Government subsidies of consolidated student loans will continue to increase for another year, which will doubtlessly prompt lawmakers to accelerate planned changes to the consolidation program. A petition by Rep. John Boucher (R-Ohio) seeks to eliminate the fixed rates of student loan consolidation entirely, making repayment of consolidated student loans more onerous when interest rates climb back up.

Joe Cronin, director of StudentLoanConsolidator.com, recommends that students file consolidation applications immediately to ensure that they are locked in before Congress has a chance to change the loan program. Reputable consolidation companies will offer students the opportunity to have their applications held until July 1, when the lower rates take effect.

"With no credit checks, fees, or early payment penalties, there's absolutely no reason for graduates not to consolidate their loans. However, graduates need to act now," urges Cronin, "If the law changes late this year or next year, and graduates have not completed their consolidation, they may not be able to lock in fixed rates any longer."

Students wishing to file a consolidation application should do so at http://www.StudentLoanConsolidator.com immediately. To learn more about the rate changes, graduates can visit http://www.StudentLoanConsolidator.com/consolidation/new_rates.shtml and see how rate changes will affect them.

Contact Joe Cronin at StudentLoanConsolidator.com by email at CustomerService@StudentLoanConsolidator.com for more information; to apply for a student loan consolidation, graduates should visit http://www.StudentLoanConsolidator.com as soon as possible.

StudentLoanConsolidator.com is a division of the Edvisors Network, a multi-national education services company offering students options for managing the entire education life cycle, from getting into their college of choice to financing their education and beyond. The Edvisors Network is based in Quincy, Massachusetts, with offices in Quincy and London, England. Visit them on the web at http://www.EdvisorsNetwork.com for more information.

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