- Rates will increase July 1st, 2006
The average interest rate for a variable rate Stafford loan will increase to 7.14 percent.
The average interest rate for a variable rate PLUS loan will increase to 7.94 percent. - Rates right now are fairly low
Although rates were slightly lower a year ago, interest rates right now are still low. It should be possible to consolidate most variable rate student loans to fixed rate loans with interest rates around 5 percent.
- Consolidating can save thousands over the life of a loan
The average borrower can save over two thousand dollars by simply locking in the current low interest rate.
- Consolidating student loans is easy
Most loan companies have the relevant information already. Many consolidations can be processed over the internet.
- Consolidating may not be the right decision for everyone
Certain types of loan forgiveness (for example, for spending time in public service) may not be available on loans that have been consolidated. Always check with your lender.
- There's still time to consolidate
Although July 1st is approaching fast, many companies will work hard to consolidate loans before the deadline. Getting the proccess started as early as possible is the key to locking in a low fixed rate.
Learn more money saving tips at LearnToSaveMoney.com