Relentless Inquiry

(via Anna Eshoo's newsletter)

“On July 1, 2006 the interest rates on outstanding federal student loans will rise to their highest levels in years. Students, graduates, and parents can take steps to avoid these hikes by consolidating their loans before the July 1st deadline. Here are the facts you need to be aware of.

Current consolidation rates are 4.75% for continuing students, 5.375% for graduates, and 6.125% for parents. These rates will rise to 6.625%, 7.25%, and 8% respectively next month. By consolidating student loans using current interest rates, students and their parents can save thousands of dollars over the lifetime of their loans. Because of this looming deadline, it's important to submit an application before June 30th if consolidation is available and appropriate for you.

If you have a Direct Loan through the Department of Education you can call 1-800-557-7392 or apply on-line at http://www.loanconsolidation.ed.gov. If you have a loan through the Federal Family Education Loan (FFEL) program (a bank-based loan) you can contact one of the companies that own or service your student or parent loan(s).

If you have loans with more than one lender you can consolidate through the Department of Education or with any lender that provides federal consolidation loans. To assist students and families with this important financial decision, I?ve posted additional information and frequently asked questions on my website at http://eshoo.house.gov/
…”