Don’t Consolidate Your Student Loans!

At least not until July 1st 2009. On July 1st, the interest rates on Federal Student Loan consolidation drops to 2% on a Stafford Loan in an in-school or grace period, a Stafford in-repayment period to 2.5%. This is an opportunity for very substantial savings on loan repayment for all college students.

For example,on a  $20,000 loan to be repaid over a 20-year term, this would mean a savings of $12, 358 compared to the the same loan amount and repayment period at the current rate of 6.8%. The 2% & 2.5% loan consolidation rates for the 2009-2010 are the lowest ever in the history of the federal student loan program.

Check out this link to FastWeb for more information about the new student loan consolidation interest rate reduction.