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 SmartLoan.com, 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 LoanConsolidation.ed.gov, 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..

 

About the ICFE:

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. 
The ICFE is an award winning, nonprofit, consumer education organization that has helped millions of people through its education programs and Resources. It publishes the Do-It-Yourself Credit File correction Guide, which is updated annually. The ICFE has distributed over one million Credit/Debit Card Warning Labels and Credit/Debit Card Sleeves world wide.

The ICFE became an official partner with the Department of Defense/Financial Readiness Campaign in June of 2004.The ICFE was an active partner in the California Student Debt Resource Awareness Project (CASDRAP) which resulted in a new web site: (studentdebthelp.org).  CASDRAP disbanded in 2010, shortly after the web site project was completed.  In 2011 the ICFE assumed the single sponsorship of the (studentdebthelp.org) web site and is now responsible for its content and operation.

The ICFE is also an on-line help for consumers who spend too much.  ICFE's spending help was featured in PARADE Magazine in the Intelligence Report section. The money helps and tips are from the ICFE's Money Instruction Book, our course in personal finance.

Visit the ICFE's other web sites at: www.financial-education-icfe.org and studentdebthelp.org.  Both sites helps consumers and students with mending spending, learning about the proper use of credit, budget and expense guidelines, how to set up and implement a spending-plan and also how to access financial education courses and how to teach children about money. Other ICFE services include: Ask Mr. G,  a free eNews, and an online resource center for students, parents and educators, plus financial education learning tools and a book store.

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