Act now to save. Unfortunately, that statement will be the norm, for a long time t.come. Every July 1st, federal student loan interest rates are adjusted. Unless a downturn occurs, we will all be faced with higher interest rates.
Usually the actual rate of interest
is not known until May 30th. The rate varies annually according to 91 day treasury bills for Stafford loans and the 1 year Treasury bills for PLUS loans. It makes sense that if the Governments interest costs are going up, that they will pass on those increased costs.
There is still a little good news though. Students can consolidate their loans. They can lock in the current rate for the life of their loan. That could potentially save you thousands of dollars in interest costs.
If your decision is to consolidate your loans to save money, be sure you shop around. Not all student consolidation loans are the same. You can take a look at som.competing offers at the
equityfoundation.com/studentloanconsolidation.htm web page.
Besides looking at the new monthly payment, a better number to look at would be the APR. The annual percentage rate for your loan will determine your actual savings. Do not be tempted by the allure of a lower monthly payment if the interest rate is higher. You will end up paying more over the life of the loan.
Once you have reviewed the various rates and gotten the best deal possible, you can then go ahead and practice what you have learned in school. You have invested a lot of time and effort into your education, so get out there!
