Monday, June 05, 2006

Student Loan Consolidation Deadline - July 1st

I strongly encourage students and parents to consolidate their federal college loans before July 1, 2006 to save thousands of dollars over the life of your loans. Each year the U.S. Department of Education adjusts interest rates on outstanding college loans, with this year's rates expected to rise just over 7% for students and to 7.8% for parents. This will be the highest rate in six years.

With the cost of tuition rising by 40% in just five years, students and parents must take advantage of every opportunity to decrease their education debt. I strongly encourage Arkansans to consolidate their student loan debt immediately and not miss the chance to save thousands of dollars on loans that would otherwise take years to pay off.

Student borrowers who consolidate their outstanding loans before July 1 would be eligible to lock in an interest rate as low as 4.75 percent, which would save an average of nearly $3,500 over the life of the loan. Parent borrowers who consolidate before July 1 would be eligible to lock in a rate as low as 6.1 percent over the life of their loan.

Read the press release to find out how to consolidate your loans.