New Student Loan Rates Set - Consolidate Prior to July 1 to Save 39% or More
SAN DIEGO, June 1 /PRNewswire/ — New Student loan rates were set this
week for students currently holding federal student loans according to
Collegiate Funding. Students are urged to consolidate their loans
immediately to lock in the current rate before June 30, 2006.
   “We are seeing a big rate increase for the 2nd year in a row,” states
Mary Montiel of Collegiate Funding. http://www.collegiatefunding.com
Collegiate Funding is a free resource for Students and Parents.
   The new rates will go into effect on July 1, 2006. Students that are
currently in their grace period or in school will see their rates rise 39%
from 4.7% to 6.54%. Students who are currently in repayment will rise 35%
from 5.3% to 7.14%. Parents with Federal PLUS loans will increase 30% from
6.10% to 7.94%
   These rates apply to students with loans disbursed 7/1/98 to 6/30/06.
Students with loans prior to 1998 will have a slightly higher rate
increase.
   By consolidating now two things happen. The loan converts to a fixed
rate instead of a variable rate. Variable rates can increase to 8.25%.
Secondly, the loan term is extended from 10 years to 12 - 30 years
depending on the amount of the loan.
   By consolidating prior to the deadline, a student with $20,000 in loans
will save $5,257 over the course of the loan. “We are working around the
clock trying to get the word out,” states Mary Montiel. Students should
also shop for the best incentives. A few lending companies offer additional
incentives that may further reduce the rate for a certain amount of on-time
payments and auto debit. “Collegiate Funding offers an incentive of 1%
after 36 months of on-time repayment and an additional 1/4% immediately for
auto debit,” states Mary Montiel of Collegiate Funding.
   A 1 1/4% incentive will save a student an additional $3,675 on a
$20,000 loan. By consolidating with these incentives prior to July 1, a
student will save $8,932 over the life of the loan.
   Student and parents with loans should act fast. The deadline is quickly
approaching. Students who are in school may also consolidate. This is the
last opportunity to consolidate if you are in school as this regulation
also changes as of July 1, 2006.
   For more information on consolidating contact Collegiate Funding at
800-918-7587 or complete a request online at
http://www.collegiatefunding.com . To expedite your application Electronic
Signature is also available.
Written by Originator on June 13th, 2006 with
no comments.
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