May 31, 2006
College is about to get more expensive for students with government loans.
As of July 1, 2006, Stafford loan interest rates will jump nearly two percent. Also, the new student loans will have a fixed interest rate instead of a variable rate.
Financial advisers recommend that students consolidate before the change is made. It will save students thousands of dollars over the life of their loan.
"Make the necessary arrangements so that you don't run into those long waits and long lines at the 11th hour," said Eric Bornemeier, of Nelnet.
If students don't consolidate now, officials said with the new changes, students will have to wait until after they graduate to consolidate.
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