Students: New Higher Rates, Announced This Week, Consolidate Loans or Pay Big

Share Article

Just 30 Days Left to Consolidate Loans or Pay Big New Higher Rates, Announced This Week, Take Effect on July 1st. College grads have less than one month to consolidate student loans before a permanent rate hike on July 1 will add thousands of dollars in interest to the cost of repaying their student loan debt.

Students with multiple school loans would be well advised to take the few minutes it takes to consolidate now

College grads have less than one month to consolidate student loans before a permanent rate hike on July 1 will add thousands of dollars in interest to the cost of repaying their student loan debt. For borrowers with existing loans, the rate on Stafford loans is set to jump from as low as 4.7% to at least 6.54% on July 1 and to at least 7.14% for those with loans in repayment. Rates for existing PLUS loans will rise to 7.94%.

The good news for recent grads is that they CAN still lock in a low fixed rate by consolidating their student loans before the scheduled rate hike takes effect on July 1st. But they must act NOW; thousands of borrowers who waited too long last year could not get through on jammed phone lines and servers as the July 1st deadline approached.

“Students with multiple school loans would be well advised to take the few minutes it takes to consolidate now,” said Frank Ballmann, student loan expert and an executive vice president at consolidation leader Educational Direct. “Consolidation rates will rise by more than thirty percent on July 1 based on new interest rates, which for most means hundreds of dollars more in interest every year. This is one of the largest single rate increases in the history of the federal student loan program.”

Educational Direct’s Ballmann – a nationally-renowned student loan expert with 20-plus years of experience in the industry, including work for the US Department of Education -- offers the following tips for students and their parents:

--Students with $20,000 in student loan debt who do not lock in a low consolidated fixed rate could pay an extra $360 in interest next year alone and thousands over the term of the loan.

--The interest rate for consolidation loans can be locked in at a low fixed rate (as low as 4.75%) for the entire loan repayment term.

---There are no fees or credit checks to consolidate student loans; it is free and is a right given to borrowers under the federal loan programs, authorized in the Higher Education Act.

-Consolidation saves money and time – lowering monthly payments with a single fixed interest rate and simplifying the loan repayment process with one monthly payment.

--Make sure you find a loan consolidator with good customer service; there will be millions of calls from borrowers trying to speak with consolidation companies this June as borrowers rush to beat the deadline and lock in low rates.

For more information and answers to student loan questions, or to apply online, students can visit Educational Direct. Student loan specialists are also available to answer questions or take applications immediately over the phone at 800-895-1911. All calls to this number will be answered by a live student loan specialist. Educational Direct does not employ touch-tone or automated voice response systems.

About Educational Direct

Educational Direct serves tens of thousands of students and college graduates nationwide as a leading and trusted provider of student loan services. With personalized and superior customer service, Educational Direct is an established leader in student loan consolidation and offers solutions that allow students to substantially reduce monthly federal student loan payments with great borrower benefits. The company is headquartered in Englewood, New Jersey with additional offices in Bethesda, Maryland and New York City. Please visit Educational Direct for more details and information.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Jason Hammond
Visit website