Posted June 22, 2006 by

Only One Week Left to Lock-In Lower Interest Rates

With only a week left before the July 1, 2006 student loan interest rate increases, the “noise” about consolidating your student loans now is about to be amplified.
However, let’s take a moment to reflect on this most interesting time…
• Have you noticed how members of Congress have jumped on the “consolidate now” bandwagon? With the cost of college tuition going up, students have had to take out more loans. And more loans at higher interest rates means an onerous student loan burden upon graduation. And the kids and parents are all voters or potential voters, which makes members of Congress sit up and take notice.
• A student loan consolidation firm, OneSimpleLoan®, is challengng the Department of Education’s early termination of two-step consolidation, a process to help more students to lower their borrowing costs. Isn’t it a bit ironic that a government agency advocating education in our country takes away such a benefit?
• However, there is a bright light to all this. The recent repeal of the single holder rule has now provided borrowers who have all their student loans with one lender the privilege of shopping around for a consolidation company that will work best for them. The government taketh away one thing, yet the government giveth back something else. We wonder, why does there even have to be a trade-off?
So as you contemplate all the consolidation offers and ads about low rates, rebates and give-aways, we strongly encourage you to read the fine print. Like anything else in life, you get what you pay for. Shop around, yes. But be sure to speak with consolidators who will give you the straight facts on rates, “borrower benefits,” repayment terms and yes, on fine print.
After all, with one week left, you’ll want to make the right decision that will affect your financial affairs for years to come.

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