Nowhere to Go But Up: Student Loan Interest Rates on the Rise
Nowhere to Go But Up: Student Loan Interest Rates on the Rise
Despite the consistent drop in federal student loan interest rates, the 91-Day Treasury bill indicates that rates have reached rock bottom. Student loan borrowers, particularly those graduating in May of this year, have limited time to act and lock in the lowest rate in the 40-year history of the federal student loan program. St. Petersburg, FL (PRWEB) March 23, 2005 — Despite the consistent drop in federal student loan interest rates, the 91-Day Treasury bill indicates that rates have reached rock bottom. Student loan borrowers, particularly those graduating in May of this year, have limited time to act and lock in the lowest rate in the 40-year history of the federal student loan program. Borrowers in school or in their six-month grace period can retain a 2.77 percent fixed rate. Based on a recent auction of the 91-day Treasury bill, this low rate is projected to increase by 1.7 percentage points and reach 4.47 percent. Out-of-school borrowers should anticipate a jump from the current 3.37 percent to 5.07 percent. Similarly, the current rate on Parent Loans for Undergraduate Students (PLUS) is predicted to boost from 4.17 percent to 5.87 percent as of July 1. The average student loan debt possessed by recent four-year college graduates is approximately $21,900. At today’s rate, this balance combined with accrued interest during a 20-year repayment term equates a final sum of $30,146.06. Considering the anticipated rate (5.07 percent) for out-of-school borrowers, the final amount due on the same balance exceeds $35,000. By consolidating and combining all loan disbursements into one new loan, borrowers can lower their monthly payment and achieve a fixed interest rate, saving themselves thousands during repayment. However, borrowers who procrastinate may experience a rude awakening, as fixed-rate loans are subject to elimination. “Congress has proposed to eliminate fixed-rate consolidation loans by as early as 2006,” stated Janel Landis, a spokesperson for American Collegiate Financial Services (ACFS), a leading marketer of federal consolidation loans. “This bill is likely to pass, and would mean fixed-rate consolidation loans would become variable, meaning they will float with the market, subsequently costing student borrowers thousands in unwarranted interest charges.” To complete a consolidation loan application online, visit: http://www.onestudentloan.com/apply/apply.aspx For more information, or a sample copy, please contact: Casey Jennings American Collegiate Financial Services (800) 818-5077 ext. 1007 (727) 644-7659 About ACFS ACFS is set to become the nation’s leader in providing financial assistance to student loan borrowers. Its purpose is to educate students and parents regarding student loan debt. Since its inception in 2002, ACFS has assisted thousands of borrowers in the management and consolidation of over $1 billion in student loans. ACFS makes higher education more affordable through an innovative loan product and superior customer service. ACFS, based in St. Petersburg, FL, offers the nation’s best student loan advice at 800.818.5077. For more information on ACFS, visit www.OneStudentLoan.com.
http://www.OneStudentLoan.com
Tags: college loans, pell grants, student loans, college funding, scholarship, , college grants
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