Students Should Consolidate Loans before July 1 Deadline

There roughly are seven weeks remaining until interest rates on student loans are expected to greatly increase and rules and regulations will change. College and graduate students alike will feel a major pinch unless they now take action to consolidate their student loans.
Students throughout the country will feel considerable negative effects due to the passing Feb. 8 of the Deficit Reduction Act of 2005, S. 1932. Although many entities are finding fault with the legislation and others are seeking to challenge the bill, interest rates on student loans are poised to skyrocket on July 1.
Federal programs such as Medicare and Medicaid were cut with the passing of the Deficit Reduction Act. However, the federal student loan program took the deepest cuts, totaling more than $12 billion, leaving the nation’s students, parents and student loan companies outraged.
College More Expensive Than Ever
It is highly probable that students will face paying thousands more for their student loans because of the passing of the Deficit Reduction Act. Working-class and middle-class families that already have difficulty paying for higher education will be hit hardest. Tuition at universities and colleges throughout the country has been on the rise while the availability for student grants has decreased, making a college education less attainable.
Students who have federal loans, including PLUS and Stafford loans, can help ease their situations through student loan consolidation. By consolidating federal student loans before July 1 students easily can lock in a lower interest rate for the life of the loan. Through consolidation, students do not have to worry about a variety of monthly bills, as the program combines all of a student’s loans into one monthly payment. In addition, with student loan consolidation students can save as much as 60 percent, which can add up to a savings of thousands in the long run.
As the nation strives to be more globally competitive, the cost of college tuition is increasing. As costs increase and negative changes in the federal student loan program take hold, more and more students and families find it is more difficult to attend college. The rising cost of living is no help to graduates who find it difficult to pay back their student loans.
Student Loan Consolidation Can Save the Day
Student loan consolidation can be a big help to those students and graduates already weighed down under the heavy burden of college debt. However, with the looming July 1 rate increase scheduled to take effect, students should take action and consolidate their student loans before the deadline.NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible.