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| EdFed Helps Student Loan Borrowers Avoid Upcoming Interest-Rate Increases |
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June 05, 2007
Pasadena,
CA - With interest rates on the rise, many with student loan debt may soon find themselves paying more in interest on their loans. As of July 1, the government will be adjusting the interest rates on federal student loans. Because of this, all variable interest rates will increase by eight basis points or 0.08%. Any federal student loans borrowed prior to July 1, 2006, will be vulnerable to this change.
The new interest rates on federal student loans will be as follows:
- Stafford Loans (in school, grace, and deferment periods): 6.62%
- Stafford Loans (in repayment): 7.22%
- PLUS Loans (Parent Loans): 8.02%
EdFed, America's top student loan consolidator, is helping borrowers to protect their variable loans against the upcoming interest-rate increase by helping them to consolidate their loans. By consolidating their student loans with EdFed before June 30, borrowers will be able to lock in their multiple variable-interest loans with one low, fixed interest rate. This fixed rate will make it possible for many borrowers to avoid the approaching increase and will allow all borrowers to avoid any future interest-rate increases.
According to EdFed manager Carina Zaragoza, now is the best time for graduates to consolidate their federal education loans. She said, "Recent graduates are granted a six-month grace period on their Stafford Loans. During this grace period, no payments are required, and interest is still subsidized on eligible loans. Plus, Stafford Loans are at a lower rate during grace than during any repayment period. This means recent graduates can lock in a rate 0.6% lower than if they wait until they begin repaying their loans. And they can retain their grace period as all federal benefits carry over into an EdFed federal student loan consolidation."
Student loan consolidation merges multiple student loans into one easy-to-manage loan. Upon being consolidated, the previous loan accounts are paid in full, and the total balance of the loans is rolled into one new loan. Because borrowers who consolidate their multiple outstanding loans only need to make one payment each month to just one lender, consolidating saves time and stress.
In addition to saving time, consolidation can also save borrowers a substantial amount of money. When those with student loans opt to consolidate with EdFed, they can potentially save thousands of dollars over the lives of their loans with EdFed's incredible money-saving benefits. These benefits include interest-rate reductions, flexible repayment plans, and extended repayment terms.
To help borrowers lower their already-low interest rates, EdFed offers interest-rate reductions. By simply enrolling in EdFed's automated-debit payment program, borrowers will receive an immediate 0.25% interest-rate reduction. And after borrowers make 36 consecutive payments on time, they will receive an additional 1% interest-rate reduction. The unique thing about EdFed's interest-rate-reduction program is that once benefits are earned, they can never be lost or revoked. EdFed guarantees them for life.
When borrowers take advantage of EdFed's flexible repayment options, they are in control of the amounts that they pay monthly. Each borrower may choose from seven options to select a plan that best suits his or her individual financial situation. When they sign up for EdFed's extended repayment plans with repayment periods as long as 30 years, borrowers may actually lower their monthly payments by almost half.
"What sets EdFed apart from other lenders vying for students' business is our borrower benefits. Not only does EdFed save borrowers thousands of dollars in unnecessary interest, we guarantee our borrower benefits. Once you earn your benefit, you keep it, plain and simple," said Zaragoza. "Plus, if you add the grace-period benefit of a lower interest rate with EdFed's borrower benefits, recent graduates can save 1.85%! However, this offer is only available during eligible grace periods. That is why it is important to act now before that grace period expires."
To receive more information on federal student loan consolidations with EdFed, borrowers may call 800-821-5659 or visit www.edfed.com.
Contact:
Brooke Heath
EdFed
800-821-5659
bheath@edfed.com.
About EdFed:
As a leader in the student loan industry, EdFed is dedicated to helping students and graduates realize all of their educational goals and meet their student loan and consolidation needs.
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