Student Loan Consolidation Rates Decrease Slightly, But Fixed Rates May Not be Available in the Future
With no credit checks, fees, or early payment penalties, there's absolutely no reason for graduates not to consolidate their loans. However, graduates need to act now. If the law changes late this year or next year, and graduates have not completed their consolidation, they may not be able to lock in fixed rates any longer.
Quincy, MA (PRWEB) May 27, 2004 -- With the conclusion of the final May
91-day Treasury Bill sale, student loan rates for the coming academic year (July
1, 2004 - June 30, 2005) have been set. College graduates currently in their
six-month post-graduation grace periods will not see a difference in
consolidation rates, nor will parents with PLUS loans; for those graduates
making payments, the new consolidation rate drops from 3.5% to 3.375% effective
July 1. For a student with $50,000 in loans, this will result in a savings of
approximately $785 over the life of the loan.
There is a dark side to the
new lower rates, however. Government subsidies of consolidated student loans
will continue to increase for another year, which will doubtlessly prompt
lawmakers to accelerate planned changes to the consolidation program. A petition
by Rep. John Boucher (R-Ohio) seeks to eliminate the fixed rates of student loan
consolidation entirely, making repayment of consolidated student loans more
onerous when interest rates climb back up.
Joe Cronin, director of
StudentLoanConsolidator.com, recommends that students file consolidation
applications immediately to ensure that they are locked in before Congress has a
chance to change the loan program. Reputable consolidation companies will offer
students the opportunity to have their applications held until July 1, when the
lower rates take effect.
"With no credit checks, fees, or early payment
penalties, there's absolutely no reason for graduates not to consolidate their
loans. However, graduates need to act now," urges Cronin, "If the law changes
late this year or next year, and graduates have not completed their
consolidation, they may not be able to lock in fixed rates any
longer."
Students wishing to file a consolidation application should do
so at http://www.StudentLoanConsolidator.com immediately. To learn
more about the rate changes, graduates can visit http://www.StudentLoanConsolidator.com/consolidation/new_rates.shtml
and see how rate changes will affect them.
Contact Joe Cronin at
StudentLoanConsolidator.com by email at e-mail protected from spam bots for more
information; to apply for a student loan consolidation, graduates should visit
http://www.StudentLoanConsolidator.com as soon as
possible.
StudentLoanConsolidator.com is a division 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/2004/5/prweb129081.htm