Student loans got the best of you? Good news! You can save thousands of dollars by consolidating your student loans before June 30th. Every year student loan rates are reset based upon what the 3-month treasury yields at the end of May. Since last year the percentage rates have increased by 2 points! If the rates jump up 2 points more when reset, you can put a big dent in your pocket and debt pool if you don’t act fast.

How do you consolidate? It’s simple, by rolling all your student loans into one and locking it into a single rate, you can decrease your payments and your accumulated interest. If you are still in school the best rate you could get would be a 4.75. As for those who are on a repayment plan, the best rate you could get before June 30th would be 5.375—or course these figures apply to Stafford loans that were taken out after the year 1998.

Word of warning: Those who have already consolidated their student loans previously are not eligible to reconsolidate.

If you currently have a student loan, whether you are still in school or on a repayment plan, now is the time to consolidate for a better rate.

This entry was posted on Thursday, May 25th, 2006 at 5:14 pm and is filed under Credit, Debt, Loans, Personal Finance. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.