Is it time to consolidate those student loans?
If Congress passes the budget cut bill currently before it, then you may see interest rates for Stafford Loans and PLUS Loans to take a jump this summer. Within the bill are $12.7 billion in savings from the Federal student loan programs. Most of the savings would come from lenders having to return the difference between the new higher interest rates and the interest rates they are guaranteed.
Under the Senate version of the bill, Stafford Loan rates a would increase to 6.8% fixed rate and PLUS loans would increase to 8.5%. The House version would have Stafford Loans use a variable rate with an 8.25% cap.
With these increases looming, now might be the right time to consolidate your student loans.
If Congress passes the budget cut bill currently before it, then you may see interest rates for Stafford Loans and PLUS Loans to take a jump this summer. Within the bill are $12.7 billion in savings from the Federal student loan programs. Most of the savings would come from lenders having to return the difference between the new higher interest rates and the interest rates they are guaranteed.
Under the Senate version of the bill, Stafford Loan rates a would increase to 6.8% fixed rate and PLUS loans would increase to 8.5%. The House version would have Stafford Loans use a variable rate with an 8.25% cap.
With these increases looming, now might be the right time to consolidate your student loans.
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posted by Ken MacKenzie at
6:47 PM
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