STUDENT LOANS: BETTER LOCK IN THAT RATE.

Navigation: Main page

Author: Tergesen, AnneGutner, Toddi

EDUCATION

If you're in college and want to lock in an all-time low rate on your student loans, refinance into a single consolidated loan now. On July 1 the rate on federally guaranteed Stafford Loans is expected to rise by roughly two points from today's 2.77%. By consolidating, you can get a fixed rate as low as 2.875%. Until now, only graduates have been eligible to do this. But some lenders are offering the option to current students who simply ask to start repaying their loans and then request a deferral on repayment until after graduation. The nation's largest student lender, Sallie Mae, requires borrowers to submit a signed consolidation application by June 30 (smartloan.com). Meanwhile, parents with federal Plus loans should also consolidate now, whether their children are still in school or have graduated. The Plus rate is at 4.17%, but a consolidated loan can lock in a rate as low as 4.25%.

The McGraw-Hill Companies, Copyright 2005

PHOTO (COLOR)

~~~~~~~~

By Anne Tergesen

Edited By Toddi Gutner