Student Loan Rates Going Up - Is Consolidation Worth It?

[joshinky]

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If you have taken out any Stafford loans or PLUS loans prior to this year and haven’t consolidated them yet, you may want to consider it.

The interest rates are rising slightly on July 1st, 2007.
Here’s what the new rates will be:

Stafford Loans (in grace)
Will go from 6.54% up to 6.62%

Stafford Loans (already in repayment)
Will go from 7.14% up to 7.22%

PLUS Loans
Will go from 7.94 up to 8.02%

Student loans consolidation can help you lock into your current low rates. However, consolidation is not for everyone. Make sure you cost out your options and weigh your choices carefully before consolidating your loans. Here are some comparisons of the best consolidation loan deals available right now:
Federal Student Consolidation Loan Comparison Chart – this chart also has information on which lenders try to keep you from earning a discount.

 

[johnstoner]

This does not apply to 2006-2007 stafford loans so don't worry about consolidating that.

 

[VuDOo]

This does not apply to 2006-2007 stafford loans so don't worry about consolidating that.

That's not always the case. My 2006-2007 loan through T.H.E. was variable rate due to the date of origination.

 

[johnstoner]

which loan are you talking about?

 

[VuDOo]

which loan are you talking about?

2006-2007 Stafford

 

[johnstoner]

I guess I see how you could get hit with variable...if you get the loan processed before july 1st. but i think most people's loans have a fixed 6.8%. Its a good idea to check to make sure. good point

 

[VuDOo]

I guess I see how you could get hit with variable...if you get the loan processed before july 1st. but i think most people's loans have a fixed 6.8%. Its a good idea to check to make sure. good point

Exactly. My loan was processed during the last week of June so it remained variable. Luckily I double-checked it last week so I still have time to consolidate.