Debt consolidation – Consolidate Your Student Loans Now!

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

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

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

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