Wednesday, May 18, 2005

Student Loan Consolidation

Recently, loan companies have decided to allow students to consolidate their student loans while they are still attending college. Currently, interest rates are at a historic low around 2.77% for Stafford loans. The interest rate could be lower for people who pay their loans on time. By June 30, 2005, the rates will rise to 4%, and they will probably not decrease after this time. Students are eligible to consolidate loans accrued up to this time; loans for next year are not eligible. Although a student could save up to fifty percent on their loan repayments, the payment period could be extended from 10 years to 30 years. Currently, THE, Wells Fargo, and several other lending companies are offering consolidation.

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