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Save Thousands on Your Student Loan Repayment. Take Action July 1st.
June 18, 2009
On July 1st, borrowers who have federal loans with a variable interest rate will be able to take advantage of the lowest interest rates in the history of student loan programs through loan consolidation.
Borrowers who consolidate will not only save themselves a lot of hassle but a great deal of money as well. The new interest rates will save borrowers thousands of dollars over the life of the consolidated loan. Here’s what you need to know:
When:
July 1st, 2009
How to Consolidate:
New Rates:
- Stafford Loan Consolidation (In-School/Grace Period): 2.00%
- Stafford Loan Consolidation (Repayment Period): 2.50%
- PLUS Loan Consolidation: 3.38%
What You’ll Save:
If you had a $20,000 Stafford loan with standard 10-year repayment plan and a 6.8% interest rate, you could expect to pay $230 a month and $7,619 over the life of the loan in interest.
But, if you locked in the 2% interest rate available after July 1, you’d pay $184 a month and only $2,083 in interest over the life of the loan. That’s a 20% lower monthly payment and total interest savings of $5,536 (73%).
Using the same example, with a 20-year repayment term, you could expect to pay a third less per month and three quarters less in total interest over the life of the loan, a savings of $12,358.
To see the requirements and exceptions to the new interest rate offerings, read the fine print here.
WinnieT19
about 1 month ago
THANK YOU! It's really helpful.
mrobeng
2 months ago
I know I will look into this repayment plan, my student loan debt is growing and I may need to continue to borrow to complete my academic goals. student loan consolidation
NatsumiM
2 months ago
is it too late? will they be doing this next year?
l_matthews
2 months ago
Can I still apply now?
peirce
3 months ago
what are the benfits of the finicial aid package and award letter
JanayP17
4 months ago
I think this is really great us college students need all the help we can get!!
deeandra
4 months ago
i hope i qualify
CaresseJ8
4 months ago
i think this will really help because i have loans, and the interest rates are really high
MaryAnnE5
4 months ago
Consolidate student loans as of -7-1
HamidaB3
4 months ago
The whole five years thing I believe is with Perkins loans. Perkins loans forgives your loans if you work in certain industries, but only if it is still a separate loan from the others. I have one of those (along with a few others) and I will definitely not be consolidating Perkins come July.
ShaquineC
4 months ago
wow I hope this really pans out to our advantage
CharlotteW76
4 months ago
Lera
considering how hard it is on students and families in these economical times, this consolidation should be offered to all students who have student loan no matter what year so students could become encouraged to pay down their loan as well as their parents. I also think people should be allowed to pay any amount they could to get the balance down that always encouraged people to do little by little but get it down. Most college graduates are happy to pay down their loan since they were responsible enough to go through college, they are a group that is responsible in paying them too, they deserve the break for their hard work.
MargaretB182
4 months ago
For those who want to pay off their loans faster: what does Nike say? "Just do it." You'll be a happy camper if you don't put it off. Pay more on your principle, too, if you're able to make the loan end faster. And do yourself a favor: don't take any more loans out. Better to step out a semester and work (or get part time work during the semester) than to have these loans hanging over your head and no job after graduation. (If you have a job right now, maybe at the the local pizza shop, thank the Lord! and keep it until you have something firm!! Some pay is better than no pay.)
elisibilia
4 months ago
So bAsically those that took student loans for the academic year 2006-2007 are still screwed since it was the first and one of the only years with non variable federal loan interest rates!!??
A student the previous year who took the same loans will have an interest rate of 6.8% instead of 2.0%, 2.5% or 3.8%- that is really screwed up!!! Who can we write to??
RobinC325
4 months ago
I believe the gov. loan consolidation program is legit. I seen this information on an early morning tv show about a month ago. Check into it for yourself, cause you don't have to take my word for it. Good luck w/ your search. I plan to take adwantage of it too. I would also like concrete info on how you can get part and or half of your student loan forgiven after 5 years according to the comment(s) posted.