Time Is Running Out Save Thousands With Federal Student Loan Consolidation Before July 1

Time is​ Running Out: Save Thousands With Federal Student Loan Consolidation Before July 1
Are you​ a​ college student or​ a​ recent college graduate with student loans? Do you​ know that student loan interest rates are expected to​ increase almost 40 percent on​ July 1?
Fortunately,​ you​ still have a​ chance to​ save money and consolidate your student loans into one fixed-rate loan .​
Federal student loan consolidation allows students and families a​ chance to​ reduce monthly payments and lock in​ low interest rates-potentially saving thousands of​ dollars over the​ life of​ the​ consolidation loan.
According to​ Nelnet,​ a​ leading education finance company,​ a​ student in​ college with a​ $20,​000 balance and 20-year consolidation term can save more than $5,​000 in​ interest by consolidating before the​ July 1 deadline .​
In addition to​ interest saved,​ student borrowers will also reduce their monthly payment by up to​ $22 by locking in​ the​ lower interest rate .​
To take advantage of​ this money-saving opportunity,​ students and new graduates need to​ act soon,​ said Tim Bornemeier,​ Managing Director of​ Nelnet Consumer Solutions .​
Consolidating your student loans is​ an​ effective debt management tool that can save you​ thousands of​ dollars if​ you​ complete and return an​ application before the​ rates rise on​ July 1.
Student loan consolidation combines multiple federal student loans,​ such as​ Stafford and PLUS loans,​ into one loan with one low monthly payment .​
The fixed interest rate for a​ federal student loan consolidation is​ determined by taking the​ weighted average of​ the​ interest rates of​ the​ original student loans,​ rounded up to​ the​ nearest 1/8 percent .​
The fixed interest rate cannot exceed 8.25 percent.
This is​ the​ last hurrah for in-school borrowers,​ added Bornemeier .​
After July 1,​ a​ change in​ the​ consolidation program states that in-school borrowers will have to​ wait until they graduate or​ drop to​ less than half-time enrollment to​ consolidate,​ forcing them to​ risk higher interest rates and pay more for their education .​
We [at Troy University] strongly urge all eligible students to​ consolidate before the​ July 1 interest rate change,​ said Fred Carter,​ Associate Vice Chancellor of​ Financial Aid at​ Troy University .​
This allows them to​ get the​ lowest possible monthly payment,​ a​ fixed interest rate,​ and the​ opportunity to​ save thousands of​ dollars in​ interest payments .​
Many of​ our students still repay within the​ 10 years,​ but consolidation affords them the​ opportunity to​ lock in​ the​ lowest possible rate over the​ longest time.

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