Education Department To Hike Student Loan Rates on June 30th, 2005
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Education Department To Hike Student Loan Rates on June 30th, 2005

San Diego, CA - Students and parents with loans should consolidate now.  The Department of Education announced that rates on federally guaranteed student loans will jump by a record amount on July 1. Because of an increase in Treasury bill rates - which the loan rates are pegged to - the in-school rate for the federal Stafford new loans will rise from the current 2.77% to 4.7%.  The rate for Stafford loans in repayment will rise from 3.37% to 5.3%. The rates on PLUS (Parent Loan for Undergraduate Students) loans will rise from 4.25% to 6.1%.
Students can still consolidate their loans at these record-low rates until June 30, 2005.

Students may contact, part of SallieMae, which is the nation's No. 1 paying-for-college company, that primarily provides federally guaranteed student loans originated under the Federal Family Education Loan Program (FFELP). Sallie Mae currently owns or manages student loans for 8 million borrowers. The company was created by Congress in 1972 as a government-sponsored enterprise (GSE). SLM Corporation, commonly known as Sallie Mae, began privatizing its operations in 1997, a process it completed at the end of 2004 when it terminated its GSE charter, ending its ties to the federal government. 

Students may also contact, a federal direct loan consolidation group which works with borrowers, schools and loanholders. To qualify for the current low interest rates, the student loan consolidations must be completed on or before June 30, 2005..


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The Institute of Consumer Financial Education (ICFE) was founded in 1982 by the late Loren Dunton (creator of the Certified Financial Planner (CFP) designation).  The ICFE is dedicated to helping consumers of all ages to improve their spending, increase savings and use credit more wisely. 
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