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Debt consolidation
Consolidate Your Student Loans Now!
by Charles
Essmeier
The
Federal student loan program has benefited thousands of college students in the
forty years since it was introduced. Interest rates for the program have
historically been quite competitive, and the program has allowed many people to
acquire a college education who otherwise might not have been able to afford
one.
At the
moment, interest rates on Federal student loans are the lowest in history, but
that is about to change. On July 1, 2005, the interest rates on Federal student
loans will rise, due to an increase in the price of Treasury, bills, to which
the interest rates on student loans are tied.
While an increase in interest rates is seldom viewed as a good thing, knowing
about it ahead of can be helpful. Between now and June 30, new graduates or
those who have been repaying existing loans can consolidate their student loans
at current rates. The rates currently vary, with fixed rates being slightly
higher than adjustable rates. Those considering consolidation might wish to
convert their loan to a fixed rate. Depending on the amount of the loan,
borrowers may extend their loan terms to as long as 30 years.
There is also legislation pending in Congress that would change the Federal
loan system so that all future loans are adjustable rate, with no fixed rate
option. This will save the government money by not allowing students to lock in
long-term loans at low rates during times of increasing interest rates.
Students who wish to obtain a fixed rate loan may not have much longer to do
so.
Rates will vary slightly from lender to lender, and the market for loan
consolidation is quite competitive. Those wishing to consolidate their loans
should consider shopping around for the best deal while time permits.
Copyright 2005 by Retro
Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to
informational Websites, including End-Your-Debt.com, a site devoted to debt
consolidation and credit counseling, and HomeEquityHelp.net, a site devoted to
information regarding home equity loans.
Keywords: Debt
consolidation, debt management, credit counseling, bankruptcy, credit cards,
home equity loan
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