Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : Student loan rates are higher because of massive consolidation effort

« Senate Judiciary Committee considers Identity Theft Protection Act | Main | Credit card companies raise penalty fees »

August 01, 2005

Student loan rates are higher because of massive consolidation effort

Student loan consolidation reached very high numbers literally overwhelming lenders. According to MarketWatch too many students sent their consolidation paperwork just on time, before federal government's July 1 consolidation deadline. As the result banks are so backed up with loan consolidation paperwork that they can't process all the applications. So instead of getting 2.77 percent interest rate which was the historically lowest rate for consolidated student loans, many are stuck with 4.7 percent. That is for a few months at least, while their papers are being worked on.

For those students who graduated from private schools, or highly expensive professional programs - medical, law, business, etc. student loans often run well over $100,000. Almost 2 percent difference with a loan of that size means quite a bit of money even for a few months.

Posted in Student Loans at August 1, 2005 11:51 PM

Email this entry to a friend

Welcome

Bad Credit Advisor online magazine provides daily news about credit, debt and mortgage. We aren't paid to mention specific deals or products. We cover what we think is interesting as industry professionals ourselves.

Information

About
Contact
Disclaimer

Syndicate

RSS 2.0 Feed