Consolidation Interest Rate Increase July 1st — Big Deal or Not?
Interest rates for student loan consolidation will go up a whole eight (8) basis points effective mindmight, June 30, 2007.
Notice we said basis points, which means .08. While that may not sound like much, it still means that if you don't consolidate now while you can, your interest rate will go up on July 1st.
Frankly, why give any money away if you don't have to, no matter how little it may be?
In addition, don't overlook the value of consolidating during your grace period, which is the 6 months right after you separate or graduate from college. Consolidation during grace period means you can earn another .60% interest rate reduction over the life of the loan. Now that can add up to several thousand dollars!
To answer the question, yes, July 1st a big deal. Because no matter how you look at it, the federal consolidation program is a boon to student loan borrowers So don't leave money on the table; consolidate your student loans now, if you can!
Leave a comment