Quincy, MA (PRWEB) May 31, 2006
With the final auction of the 91-day Treasury Bill on May 30, 2006, federal student loan rates have been set for the new academic year beginning July 1, 2006. The new rates for federal student loans are:
Stafford Loans for students in school: 6.543%, up from 4.70%
Stafford Loans for graduates in repayment: 7.143%, up from 5.30%
Parent Loans for Undergraduate Students (PLUS): 7.943%, up from 6.10%
These new federal loan rates take effect for existing federal student loans as of July 1, 2006. Borrowers who want to lock in the current rates, which are much lower than the new rates, can do so by consolidating their student loans up until June 30.
"With all of the recent changes in legislation surrounding the federal loan program, there may be some confusion about who this rate increase will affect," states Jonathan Rudy, Director of Loan Consolidation at http://www.StudentLoanConsolidator.com. "It comes down to this - if you're a student or a parent with federal student loans, and you don't consolidate before June 30, your interest rates are going to increase and you'll end up paying thousands of dollars more in interest."
The savings borrowers can expect by consolidating are significant. The average college graduate with $30,000 in federal student loans who consolidates before the deadline, will save more than $6,300 in unnecessary interest - savings that will only occur if borrowers consolidate before June 30.
Should graduates consolidate their student loans? "Yes, absolutely - there's no question about it," states Rudy. "With no fees, no credit checks, and cash building borrower benefits, there's no reason not to consolidate right away. Most importantly, since the new rates are nearly 35% higher, and the time to consolidate at today's lower rates is nearly gone, borrowers need to act quickly and consolidate their loans today." Said Rudy.
"When federal student loan rates increased last year, the influx of applications caused major industry wide processing delays - We can't stress enough how little time is left to apply," urges Mr. Rudy. "Very often graduates wait until the last minute to file their paperwork and by then, they may not be able to insulate themselves from the rate increase. The earlier you apply, the better off you'll be."
Students wishing to file a consolidation application should do so at http://www.StudentLoanConsolidator.com immediately or call (877) 328-1565.
http://www.StudentLoanConsolidator.com is a service of the Student Loan Network (http://www.StudentLoanNetwork.com), an 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 Student Loan Network is based in Quincy, Massachusetts.
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