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College Graduates Could Lose Thousands of Dollars in 2004
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Author: Administrator Account
Added: 03/10/2004
Type: Summary
Viewed: 1005 time(s)
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 College Graduates Could Lose Thousands of Dollars in 2004
Quincy, MA March 6, 2004--College graduates could be looking at a significant increase in the interest rates they pay on federal student loans if they don't consolidate their student loans before July 2004. The US government sets the rates for all federal student loans based on the 91-day Treasury Bill (T-bill) rate at the end of May of each calendar year. The rates are then fixed for the year, becoming effective July 1, and affect all non-consolidated student loans.
According to market research firm MarketVector.com, the 91-day T-bill rate is projected to rise from a current 30-year low of 0.91% to as much as 1.78% in May 2004. For a student with $50,000 in loans, this could result in an overall increase of nearly $8,000 in interest over a 25 year repayment term. Additionally, each increase in the federal student loan rate increases the monthly payment on non-consolidated federal student loans such as Stafford and PLUS loans.
Kelly Naudus, a loan consolidation specialist at StudentLoanConsolidator.com, notes, "With rates projected to go up by as much as 1%, a student graduating college with $50,000 in loans would need to make a salary of at least $60,000 a year in order to make repayment of their loan a minimal financial burden. By consolidating before rates go up, that same student extends their repayment term and locks in the current rates, and so would only need to make about $30,000 per year to repay their loan and still have money left over for living expenses. That's a huge difference, and with the economy still struggling, the chances of finding a job right out of college that pays more than $60,000 per year aren't as good as jobs around $30,000."
Ms. Naudus urges graduates and students graduating prior to July 1, 2004 to consolidate as soon as they are out of school. Locking in current rates can save thousands of dollars, as long as graduates apply by May 15, 2004. Students can consolidate their loans by visiting http://www.StudentLoanConsolidator.com and applying online, or calling 877-328-1565.
Contact Kelly Naudus at the Edvisors Network at customerservice@StudentLoanConsolidator.com for more information; to apply for a student loan consolidation, graduates should visit http://www.StudentLoanConsolidator.com as soon as possible.
StudentLoanConsolidator.com is a division of the Edvisors Network, a multi-national education services company offering students options for managing the entire education lifecycle, from getting into their college of choice to financing their education and beyond. The Edvisors Network is based in Quincy, Massachusetts, with offices in Quincy and London, England. Visit them on the web at http://www.EdvisorsNetwork.com for more information |
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