Student Loan Consolidation Rates Set to Increase on July 1
Congress voted on and passed Feb. 1 the Deficit Reduction Act of 2005 that included massive cuts to federal student loan programs. The $11.9 billion in student loan cuts, including changes in laws regarding student loan consolidation, will negatively impact those students seeking a college education and others seeking to consolidate their higher interest loans. The industry expects a rush of students seeking to consolidate at the current low rates that are set to increase on July 1.
The Deficit Reduction Act of 2005, S. 1932, was narrowly approved Feb. 1 by the House of Representatives. Passing by a two-vote margin of 216-214, S. 1932 was signed into public law Feb. 8 by President Bush, thereby approving the $11.9 billion in student loan cuts over the next five years.
Students and graduates now are in jeopardy. With college costs increasing every year and the forthcoming higher interest rates on student loan consolidation, college students are rushing to consolidate before the July 1 rate increase.
Student Loans Take the Hardest Hit
The cuts to federal student loans are the worst...
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