Do Not Wait to Consolidate Student Loans

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With more and more press each day about the impending student loan rate changes, and new interpretation of regulations by the Department of Education, there are no doubt many students and families looking for a simple, clear answer about whether to consolidate student loans or not. The short answer is, yes.

With more and more press each day about the impending student loan rate changes, and new interpretation of regulations by the Department of Education, there are no doubt many students and families looking for a simple, clear answer about whether to consolidate student loans or not. The short answer is, yes.

If you have graduated, or will be graduating this May or June, that "yes" is unequivocal. Graduates can lock in the lowest rates in 39 years, and can reduce their monthly payments by up to 60%.

The newest twist in the consolidation puzzle is the "in school consolidation", where students who are currently enrolled and will be enrolled past the July 1 consolidation can consolidate their existing loans now to secure the low rates for at least part of their student loan portfolio.

The principal question facing students still in school is, "Should I consolidate or not?" The answer is yes - assuming that the 91-day Treasury Bill (T-bill) rate (the rate on which all student loan interest rates are set) does not experience a radical, unprecedented drop. Most experts concur that a rate drop of more than 0.25% is unlikely; recent indicators as of May 17, 2005 show that the 91-day T-bill rate remains around 2.85%, and will continue to do so, plus or minus 0.20%.

What does that mean for students in school? Consolidating today, while still in school, would create a fixed-rate loan at 3.375%, which would have payment deferred until graduation. Assuming the current projected rates are more or less accurate, that same student loan would receive a rate of 4% in a grace period after July 1. The savings are not insignificant, either. On a balance of $30,000 in student loans, a student that consolidated in school today would have an estimated monthly payment of $212 per month. That same loan payment after July 1 would be approximately $320 per month, a $108 difference each month.

Should students, regardless of enrollment, consolidate their student loans? "Yes, absolutely," states Katie Dexter, Director of Operations at the popular StudentLoanConsolidator.com web site. "With no fees, no credit checks, and low rates, there's no reason not to consolidate, especially since it appears that the new rates will be considerably higher than today's rates," said Dexter.

"However, graduates need to act now," urges Ms. Dexter. "Very often, graduates wait until the last minute to file their paperwork and by then, they may not be able to insulate themselves from a drastic rate change. The earlier you apply, the better off you will be."

Students wishing to file a consolidation application should do so at http://www.StudentLoanConsolidator.com immediately or call (877) 328-1565.

Contact Katie Dexter 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 service 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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Katie Dexter
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