Student Loan Interest Rates Rising On July 1 2007
May 31st, 2007As of July 1st, 2007, the interest rates on student loans are scheduled to increase. Although less than one percent, the resulting repayment amount can rise significantly over the life of the loan. So, college graduates can definitely use information on how to make student loan repayment less painful financially.
First, and most importantly, consolidate. Interest rates are locked in, once all student loans have been combined and assigned to one lender. So, graduates need to apply for consolidation before the deadline.
Unfortunately, while student loan interest rates are locked in at the lower level, the grace period is forfeited. Normally, the monthly repayment schedule does not go into effect until six months after graduation. So, an individual completing college in May does have to start making payments until November of that same year.
