| Students
can still consolidate their loans at rates at all time
lows. It is also possible for the first time this year
to consolidate bank-based Stafford loans while still in
school. You can do this by putting them in repayment status
then asking to defer payments until graduation.
Few students can afford to pay for
college without some form of education financing. Two-thirds
of undergraduate students graduate with some debt, and
the average debt is over $20,000. Graduate and professional
students seeking Masters degrees and Doctorates borrow
even more enormous amounts. Grants, scholarships, work-study
and other forms of aid do not cover the full cost of
a college education. Student Loan rates are going up along
with other interest rates. On July 1, 2005, the federal
government reset the student loan interest rates from
1.625% to 3.45%. Student PLUS loans went from 2.17%
to 4.1%. Now is the time to get into a student loan
or PLUS loan while rates are still low.
Many students find that they must supplement
their savings with government
and private loans. Education
loans come in three major categories: student
loans, parent loans and private
loans. A fourth type, consolidation
loans, allows the borrower to lump all
of their loans into one loan for simplified payment.
We now offer tips
on student loan defaulting, EstudentLoan and FinancialAid
to help you find the best loan that suits your individual
needs.
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