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College Students and Parents Should Consolidate Loans Before July 1st

June 16, 2006

            The average cost for four years of college at a state university is now over 40,000 dollars, and the cost to attend a private university now tops 107,000 dollars.  These massive costs are far too much for many families to cover.   Now that Republicans have limited the availability of student aid, both students and their parents are forced to take on huge loans in order to earn their college degree and enter their chosen career field. 

In fact, the average college senior graduated this year with more than 17,000 dollars in student debt.  These graduates must make career and life decisions based on what will allow them to make the monthly payments that are now coming due.  Another problem looms for them, however, if they do not consolidate their loans before July 1st.  That's when interest rates will nearly double on their federal student loans.      

To avoid dramatic hikes in interest rates, and to lock in rates as low as 4.75 percent, I strongly encourage students and graduates to consolidate their federal loan payments before July 1st.  Consolidating your loans could save you thousands of dollars over the next decade.