Code JDMBA2b: Important News For Those With Federal Student Loans

Tuesday, May 31, 2005

Important News For Those With Federal Student Loans

I have already sent in my consolidation paperwork. My readers have until the end of June to do the same before Federal Stafford loan rate rise by 1.93%. From CNN:

"Come July, the rock-bottom rates on your federally guaranteed, variable-rate student loans will be going up. The Federal Stafford loan rate will rise 1.93 percentage points to 5.3 percent, while the Federal PLUS loans for parents will also rise 1.93 percentage points to 6.1 percent."

"When you consolidate in a low-rate environment, you roll all your loans into one and lock in a single rate on the money you owe. That rate is a weighted average of all your loans rounded up to the nearest eighth of a percentage point."

"Right now, if all your loans are Stafford loans obtained after June 1998, the consolidated rate is 2.88 percent if you're still in school and 3.38 percent if you've graduated and have started repaying them. Come July 1, however, those rates will jump to 4.75 percent and 5.38 percent, respectively."

If you decide to consolidate: "If all your loans are with one lender, you have to consolidate with that lender. Bush has proposed eliminating the single-holder rule, but for now it's still in place."

"If you have loans with more than one lender, ask your school's financial aid office which lenders offer the best consolidation deals in terms of discounts and customer service."


"Department of Education recently indicated that if you're a current student you may choose to consolidate your loans before graduation. To do so, you would need to request early repayment status from your lender and ask for an in-school deferment. One potential drawback to consolidating while in school is that you would need to begin repaying your loan as soon as you graduate, forfeiting the 6-month grace period."

The main points here are:
  • Consolidation needs to be done by the end of June to take advantage of the current rates
  • If all of your loans are with one lender you must try to consolidate with that lender first
  • If you include your Perkins loans in your consolidation you may lose certain loan forgiveness provisions
  • Current students can now consolidate under a new Department of Education rule! However you will lose your 6 month grace period
  • Many of my readers could save thousands of dollars by consolidating now (depending on your balance and repayment period)!
  • I am not making any legal advice here. Please contact your lender and do your own due diligence before consolidating

My advertiser links will lead you to more information on loan consolidation. I am not recommending any specific loan consolidation company. Please do your own research before consolidating.

A few more informative sources on the issue can be found here:


At 10/02/2005 4:11 PM, Blogger payday loan said...

Does that make any sense to you? -the cash advance guy

At 10/03/2005 6:54 PM, Blogger Natwho said...

We offer the lowest finance rates on a variety of credit needs including paycheck loan and many more. Whether you have perfect credit or really bad credit, it doesn't matter. We can get you approved for a home refinance, first time home purchase, auto loan, boat loan, payday loan advance and even a signature only credit line of up to $20,000.00 Apply online today for an instant decision and get the funds you need fast! Apply at right now.

At 10/04/2005 4:01 AM, Blogger ebgcommute said...

Hey, good stuff!
I have a credit report online site. It pretty much covers credit report online related stuff.
Check it out later :-)

At 10/04/2005 7:19 PM, Blogger Chandor said...

Your government student loan consolidation problems resolved. Click here government student loan consolidation

At 10/05/2005 12:20 AM, Blogger Jim Naka said...

I've stumbled across your blog when I done some puzzle game research in Google. You're doing a pretty nice job
here, keep up the good work :-)


puzzle game

At 4/30/2007 2:57 PM, Blogger Sony Ericsson Takes Over Title said...

This site is so nice. Really i've been checkit for a wile. Here's some info about the Sony Ericsson tennis tournament history. If you like to visit my page it will be a pleasure. Or if know some one that likes to know about this, givethem this link. Will be nice to had some users like you with sites as good as yours. On August 29, 2006 Sony Ericsson Mobile Communications announced the signing of a four year contract worth $20 million to become the title sponsor of the Sony Ericsson Open. The Sony Ericsson Open is currently the largest tournament in the world with Title Sponsorship. When Butch Buchholz established the event in 1985, it marked the first time in 56 years that a new two-week tournament featuring men and women was launched. Located in Delray Beach (Laver’s International Tennis Center) in 1985 and Boca Raton (Boca West) in 1986, the tournament found a permanent home in 1987 on Miami’s Key Biscayne. In 1994, Miami-Dade County christened the Tennis Center at Crandon Park, a 30-acre expanse that is transformed each year from a public tennis facility into a full-fledged festival for the Sony Ericsson Open. The Sony Ericsson Open was awarded “Tournament of the Year” by the ATP for five consecutive years and seven of the last eight years and in 2004 by the Sony Ericsson WTA Tour and is considered one of the most prestigious titles in professional tennis. In 1999, the tournament was purchased by IMG.
The only combined 12-day Tennis Masters Series event on the ATP and Sony Ericsson WTA Tour calendar, the Sony Ericsson Open features the world's top-ranked pros - 96 men and 96 women in singles competition, and 32 men's teams and 32 women's teams in doubles action. The men’s final is a best 3-out-of-5 sets with every other match in both men’s and women’s singles and doubles a best 2-out-of-3.We specialize in hard to find or sold-out sports tickets, concert tickets and theatertickets for sporting and entertainment events worldwide. We provide great service whether you want to buy tickets or sell ticket. We buy and sell sports tickets, concert tickets and theater tickets on the secondary market such as Sony-Ericsson tennis tickets, US Open and othertennis open event tickets. We are not affiliated with or sponsored by any of the teams, performers, artists, box offices, venues or organizations for which we are providers. Trademarks and trade names have been used within this web site for descriptive purposes only. If you would like to buy tickets from the official distribution outlets, venues or organization box offices, please inquire directly with them.
The best place to obtain tickets for: Sony ericsson open, NCAA Final Tournament Four, acc tournament, big east tournament, at:


Post a Comment

<< Home