Wednesday, June 08, 2005

Higher Student Loan Interest Rates for 2005

Effective July 1, 2005, student loans dispersed on or after 1998 will have an interest rate of 4.7% during school and 5.30% during repayment. Rates have increased significantly since last year's rate of 2.87%. If you still have the option of consolidating previous student loans at low rate, now is the time to consolidate outstanding debt at one low rate. This can reduce your interest payments and monthly payments. However, payingreduced monthly payments over a longer repayment time can cause increased interest payments overall. Online calculators for repayment and consolidation are available from lenders.

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