Deficit Reduction Act controversy

Several government rulings, including the Deficit Reduction Act of 2005 (‘DRA’) signed by President Bush back in February, are being challenged in the Courts on several fronts. However, don’t wait to consolidate based on any pending court decision: if you’re about to graduate and you’ve got student loans, now’s the time to consolidate your student loans at today’s lower rates.
A student loan marketing company, OneSimpleLoan.com, is the lead plaintiff in a lawsuit against Margaret Spellings, the Secretary of the Department of Education. This recently filed lawsuit claims that the Department of Education has prematurely terminated a “two-step” consolidation process, depriving qualified student loan borrowers the ability to reconsolidate their student loans to save interest fees over the life of the loan. No decision as yet.
The Deficit Reduction Act’s constitutionality is being challenged because there is a discrepancy between the House and Senate versions regarding Medicare. (!) More importantly, the Deficit Reduction Act has several sections regarding student loans, including fixing Stafford loans at a 6.8% interest rate effective July 1, 2006. Again, no word on this as yet. Whatever you do, make sure you take advantage of today’s student loan and consolidation rates and benefits now!