Federal Student Loan Rate Increase Likely Near 50%
College graduates and college students graduating in May of this year have an unexpected surprise lurking around the corner - a likely 50% increase in federal student loan rates that could cost them thousands of dollars each year.
Quincy, MA (PRWEB) April 27, 2005 -- College graduates and college students
graduating in May of this year have an unexpected surprise lurking around the
corner - a likely 50% increase in federal student loan rates that could cost
them thousands of dollars each year.
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. In the past three years, Treasury Bill rates have dropped repeatedly,
making for the lowest student loan rates in the history of the Department of
Education's loan programs.
All that is about to change.
Over the
last 9 months, 13-week Treasury Bill rates have been creeping up from just above
1% to 2.941% as of the April 25, 2005 auction. If the 13-week Treasury Bill rate
continues to climb at this pace, by the end of May the rate will be
approximately 3.233%. The 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 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 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 later this
year. Grad students can also consolidate just their undergraduate loans if
they're still in school."
"With no credit checks, no fees, and no early
repayment penalties, 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.
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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/2005/4/prweb233664.htm