Quincy, MA (PRWEB) February 15, 2006
President Bush has signed the Deficit Reduction Act of 2005, and that's bad news for college graduates in 2006. The Act 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 at a time when tuition has never been higher. However, recent graduates can consolidate their student loans today to insulate themselves from the rate increases.
Federal Stafford loans, currently one of the most affordable federal student loans, will rise from interest rates as low as 4.7% (for students currently enrolled) to 6.8% on July 1, a 45% increase. Parents fare no better; the PLUS loan, currently a competitive 6.1%, will increase to 8.5% on July 1, a 39% increase. Existing borrowers face even higher interest rates as the short term Treasury Bills continue their upward rate climb.
Student loan consolidation allows students to lock in their current interest rates, preventing the July 1 increase from affecting them. Additionally, loan consolidation reduces the monthly payment and simplifies graduates' finances by combining all their student loan bills into one payment.
Jonathan Rudy, director of student loan consolidation at http://www.StudentLoanConsolidator.com, stated, "No other industry, even the red-hot real estate market, has seen such a double digit increase in rates in just one year. Families will likely find that paying for college without busting the budget will be harder than ever. Consolidating now will freeze graduates' interest rates, protecting them from this legislation."
The new legislation also prohibits students who are currently enrolled from consolidating, as well as prohibiting married couples from consolidating their loans together, and prohibiting students from consolidating more than once.
"The only viable option for students who want to protect themselves from this rate increase - excepting those who can repay their loans in full by July 1 - is student loan consolidation," said Mr. Rudy. "However, it's incredibly important that students and parents consolidate their loans now, as soon as possible, to ensure that their consolidation is completed no later than July 1."
Mr. Rudy encourages students, even those currently enrolled, to file 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 http://www.StudentLoanConsolidator.com or call toll-free (877) 328-1565.
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 and London, England. Visit them on the web at http://www.EdvisorsNetwork.com for more information.
Contact Jonathan Rudy with questions at 617-328-1565.
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