Debt Consolidation – Consolidate Your Student Loans Now!
By Charles
Essmeier
The Federal student loan program has benefited thousands of college
students in the forty years since it was introduced. Interest rates for the
program have historically been quite competitive, and the program has
allowed many people to acquire a college education who otherwise might not
have been able to afford one.
At the moment, interest rates on Federal student loans are the lowest in
history, but that is about to change. On July 1, 2005, the interest rates on
Federal student loans will rise, due to an increase in the price of
Treasury, bills, to which the interest rates on student loans are tied.
While an increase in interest rates is seldom viewed as a good thing,
knowing about it ahead of can be helpful. Between now and June 30, new
graduates or those who have been repaying existing loans can consolidate
their student loans at current rates. The rates currently vary, with fixed
rates being slightly higher than adjustable rates. Those considering
consolidation might wish to convert their loan to a fixed rate. Depending on
the amount of the loan, borrowers may extend their loan terms to as long as
30 years.
There is also legislation pending in Congress that would change the
Federal loan system so that all future loans are adjustable rate, with no
fixed rate option. This will save the government money by not allowing
students to lock in long-term loans at low rates during times of increasing
interest rates. Students who wish to obtain a fixed rate loan may not have
much longer to do so.
Rates will vary slightly from lender to lender, and the market for loan
consolidation is quite competitive. Those wishing to consolidate their loans
should consider shopping around for the best deal while time permits.
©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of
Retro Marketing, a firm devoted to informational Websites, including
End-Your-Debt.com, a site devoted to
debt consolidation
and credit counseling, and HomeEquityHelp.net, a site devoted to information
regarding home equity
loans.
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