Consolidate Student Loans Now

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New York —
The interest on student loans will be 1 July, the opportunity to save money for those who act quickly.

The smart student or recent graduate is now existing loans to lock in a lower rate.

“It’s simple,” says Frank Ballmann, Executive Vice President of Finance at Affinity Direct, a loan consolidation lenders in Englewood Cliffs, NJ: “It is a safe bet that you save money by making your loan by June 30 .

On 1 July, the interest rate on Stafford loans is 6.8% from 5.3% and prices for a Plus loan growth to 8.5% from 6.1%. The plan also limits on the borrowing of the first and second year under grads and students.

A Stafford loan is a low-interest educational loans from the federal government, but by the commercial banks. The loans are need and available to undergraduate and graduate students.

Plus loans are available to parents of dependent students, regardless of financial need. The program was expanded to include students. Borrowers owe interest once the loan, and repayment begins as soon as the final payoff is. Unlike a Stafford loan, loans, plus a bank check to qualify.

The Federal Consolidation Loan Program allows borrowers with federal student loan funds insured to roll them into a single package and the repayment of a monthly payment. The new payment can be significantly lower than the sum of the payments, because the existing loan term can be 30 years from 10 years, the maximum for most of the German Federal Ministry for Education Loans.

The planned rate hikes are part of a budget to cover the costs of Hurricane Katrina relief and other efforts to ensure the federal deficit.

The interest rates will rise, but still low in historic terms. The 1 July rate hike will be passed to the cost of a university degree and they are more expensive to repay the debt. Borrowers who already “their loans to lock in lower rates will continue that rate, but can not consolidate again unless there is a new loan for the introduction to the package.

Consolidation often allows students to reduce monthly payments by 50% or more. If money is tight, the choice to pay only the interest payment of more than 60% for two years. Remember: If you choose this option, you can not pay the principle and therefore not reducing the balance.

Many lenders face fourth point from the interest rate on the monthly payments automatically deducted from a checking or savings account.

The savings from reduced student loan payments can be used for immediate needs such as paying off high-interest credit cards or long-term projects such as funding a 401 (k) retirement or storage in a home purchase. The reduced debt-to-income ratio can also be your financial profile and save a little on a mortgage. (See “The too good to be true Taxbreak).

Ballman says loans can be consolidated, with no credit check or employment verification and no prepayment penalties. Check with your lender or shop around for a loan consolidator.

Many banks offer very good information about the funding on their websites, including JPMorgan Chase, Bank of America, Citigroup and Wells Fargo. Contact your lender.

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