WASHINGTON: CONSOLIDATE LOANS NOW

          HARRISBURG, June 22 – State Senator LeAnna M. Washington (D-Philadelphia/Montgomery) is reminding those with federal student loans to act fast if they want to consolidate their student loans now before the interest rate increase scheduled for July 1, 2005.

          “You must act today if you don’t want to be hit with rising interest rates on your student loans,” Washington said.  “You can consolidate now by calling 866-803-3706 and speaking with a PHEAA representative by midnight on June 30th.”       

          The interest rate for subsidized and unsubsidized federal Stafford Loans during the repayment period is expected to increase from 3.36 percent to 5.3 percent.

          The interest rate for subsidized and unsubsidized federal Stafford Loans during the in-school grace and deferment periods is expected to increase from 2.77 percent to 4.7 percent. The interest rate for Parent Loans also is expected to increase from 4.17 percent to 6.1 percent.

          This rise in interest rates could cost students thousands of dollars when repaying their student loans.  By consolidating their loans, students may find repaying their loans easier.

          “Students struggling to find jobs and make their way after college may have difficulty repaying substantial student loans,” Washington said.  “By taking advantage of loan consolidation these students can avoid being burdened by rising interest rates.”

          Washington noted that consolidation counselors from American Education Services (AES) and the Pennsylvania Higher Education Assistance Agency (PHEAA) are available to work with borrowers on consolidation and other debt management issues. 

           “Don’t let this valuable opportunity to save money pass you by, contact a consolidation counselor today,” Washington said.