Clock Winding Down on Low Rate Student Loan Consolidation
College graduates and college students graduating in May of this year have an unexpected surprise lurking around the corner - a likely 2% - 2.5% increase in federal student loan rates that could cost them thousands of dollars each year, as rates for many student loans are projected to increase.
Quincy, MA (PRWEB) May 5, 2005 -- College graduates and college students
graduating in May of this year have an unexpected surprise lurking around the
corner - a likely 2% - 2.5% increase in federal student loan rates that could
cost them thousands of dollars each year, as rates for many student loans are
projected to increase.
Federal student loan rates are based on the
interest rate of the 13-week (91-day) Treasury Bill at the last auction in May
of each calendar year; rates set at that auction take effect on July 1 of that
year. Over the last 9 months, 13-week Treasury Bill rates have been creeping up
from just above 1% to 2.931% as of the May 5, 2005 auction. Current rates can be
viewed at
http://www.StudentLoanConsolidator.com/consolidation/projected-rates.php
What
does this mean for students and graduates? For students with an average of
$30,000 in federal student loans, this rate increase will translate into an
extra $1,200 in interest paid every year. Students with Stafford loans currently
at 3.37% will likely see a rate increase to anywhere from 5.25% - 5.75%; parents
with PLUS loans could expect a rate increase from 4.17% to 6% and 6.5%. Though
determining the precise increase is still a few weeks away, there's little doubt
that rates are going up.
Students and graduates can avoid potentially
losing thousands of dollars more each year by consolidating their federal
student loans before the rate change. According to Jonathan Rudy, director of
customer service at StudentLoanConsolidator.com (http://www.StudentLoanConsolidator.com ), "Graduates can
consolidate their student loans and lock in today's interest rates; once locked
in, they can't change, which means that graduates will be protected from any
further rate changes, and not have to pay any extra interest when rates change
at the end of the month. Grad students can also consolidate just their
undergraduate loans if they're still in school."
"With no credit checks,
no fees, no early repayment penalties, and low fixed rates that won't last much
longer, there's absolutely no reason for graduates not to consolidate their
loans today. However, they need to act now, literally!" urges Mr. Rudy. "Very
often, graduates wait until the last minute to file their paperwork and by then,
they may not be able to protect themselves from a drastic rate change. The
earlier you apply, the better off you will be, as you'll begin saving more each
month and you'll beat the rush."
Students and graduates can request a
free application at http://www.StudentLoanConsolidator.com immediately or call
(877) 328-1565.
Contact Jonathan Rudy at StudentLoanConsolidator.com by
email at e-mail protected from spam bots for more information; to request a free
information packet and application, 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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Source : http://www.prweb.com/releases/2005/5/prweb236816.htm