Student Loan Consolidation July 1 Interest Rate Hike Nears
The federal student loan consolidation program is heading down a path leading to interest rate increases. On July 1, 2006 interest rates are expected to increase and fixed rates no longer will be available.
With the changes set to occur in approximately two months it is important for college students to consolidate prior to the July 1 deadline. Following that date, the lives of student borrowers throughout the country easily could take a turn for the worse. With all the expected negative changes, students could find it impossible to consolidate their loans after July 1. By taking action now, student borrowers will save a lot of money in interest - money that could be used for more important things in their lives.
Instead of paying for rent and the necessities of life after graduation, borrowers who do not consolidate their student loans could find themselves with extremely high monthly student loan payments, not to mention thousands more in interest than is necessary.
To be born in a new country one has to die in the motherland.
—Irina Mogilevskaya, Russian student. “Immigrating to the U. S.,” student paper in an English as a Second Language class, Hunter College, 1995.
Student Loan Consolidation Can Save Thousands
However, by consolidating student loans before July 1, borrowers can lock in a lower, much more reasonable rate, which, over time, will save thousands. The lower monthly payment also will enable student borrowers to breathe easier knowing they have extra cash to put toward other everyday needs.
With current (http://www.nextstudent.com/consolidationloans/consolidationloans.asp) student loan consolidation borrowers who still are in school can receive a 4.75 percent interest rate that will be in effect for the life of the loan if the process is complete before July 1. A 2.75 percent interest rate now is available to eligible borrowers. This low rate includes applied benefits that typically feature the use of Auto Debit and incentives for making 36 consecutive on-time payments.
Student Loan Consolidation Makes Life Easier
There are no better terms available to describe [the] difference between the approach of the natural and the social sciences than to call the former “objective” and the latter “subjective.”... While for the natural scientist the contrast between objective facts and subjective opinions is a simple one, the distinction cannot as readily be applied to the object of the social sciences. The reason for this is that the object, the “facts” of the social sciences are also opinions—not opinions of the student of the social phenomena, of course, but opinions of those whose actions produce the object of the social scientist.
—Friedrich August Von Hayek (1899–1992)
When college students graduate they oftentimes are left with numerous student loan bills of differing amounts all with high interest rates. After adding everything up, most students find they have exorbitant monthly student loan bills. With the high price of college, the interest rates on loans make things worse, especially for borrowers who do not consolidate their student loans. Those borrowers should take into consideration that they can (http://www.com/) consolidate student loans while in school or after they graduate.
The last thing students need after graduation is a pile of student loan bills to pay. Following graduation students have to find a job and a place to live. Along with rent and other everyday expenses, numerous student loan bills with high interest rates will make things worse. Student loan consolidation will bundle together all of a student's loans into one easy payment, which makes life simpler. In effect, it also will save thousands over the years.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about (http://www.com/) Student Loans at http://www.com/.
Jeff Mictabor is an enthusiast on the topic of student loan issues in the news. He has been writing for the past 10 years for a variety of education publications. He now offers his writing services on a freelance basis. http://www.com.