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For Immediate Release
June 14, 2006
White: Federal Student Loan Interest Rate Set
to Jump July 1
Borrowers should consider loan consolidation
now to save thousands.
Harrisburg – The federal Stafford
student loan interest rate is scheduled to increase by
nearly two percent on July 1, and borrowers should consider
loan consolidation now to save thousands of dollars, state
Sen. Mary Jo White (R-21) said today.
White said that according to the
Pennsylvania Higher Education Assistance Agency, by locking
in the current low interest rates and consolidating before
July, borrowers with a $25,000 loan can save an average of
$5,580 in interest.
"It's never a good time for an interest
rate increase, but it's especially difficult when you're
trying to finance a college education. Fortunately, there is
something parents and students can do about it," said
White.
Loan consolidation helps borrowers by
locking in a lower fixed rate and by making their repayment
easier – either by lowering their monthly payments or by
combining multiple payments into one.
PHEAA consolidation counselors work
with the borrower on all debt management alternatives. PHEAA
recommends that students, parents and graduates review the
potential impact of consolidation on their current loan
benefits and on the total cost of their loan before
consolidating.
Students, parents and graduates who
would like more information on loan consolidation and PHEAA
services should call 800-338-5000, visit
www.aesSuccess.org, or
email questions to network@aessuccess.org.
CONTACT:
Leigh Ramsey
(717) 787-9684
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