Two Great Deals For Students

Two great deals for students that are in the news these days. One where you may be able to save yourself a ton of money on your student loans. The other is a bill in Congress that uses a more efficient loan program to increase student aid without costing tax payers a penny.

Here’s a quick tip – if you know someone in school with student loans, or out of school who is struggling with student loans, send them this information. According to this AP story a typical borrower could be saving $2,100.

#1. The Department of Education announced that they are doing more to allow students to consolidate their loans by allowing all students to consolidate their loans and lock in the current low interest rate – even if they are still in school. This is significant news for students because interest rates on student loans are going to go up significantly on July 1^st. The increase is expected to be a big jump, and only get bigger in future years according to the government green eye-shade folks.

You can check out the AP story on it, and learn more about consolidation at the Department of Education web site

From the AP Story: “The College Loan Corp. estimates the average borrower with $20,500 in debt - the average amount consolidated last year - would save more than $2,100 over a 10-year loan by consolidating now, based on the most recent interest rate estimates.”

#2. A report from the American Association of Collegiate Registrars and Admissions Officers and the Student PIRGs backs up a bipartisan bill in Congress that would use efficiencies in the loan program to put more money in to student aid. i.e., no cost to tax payers, just $17 billion of help for more people go to college. The headline in the University of California Santa Barbara is “Students eligible for more financial aid: Plan to rebalance federal loans would cost taxpayers nothing”.

Check out the report, and the bill too. According to the article, “The STAR Act was introduced in Congress with bipartisan support in March by state Reps. George Miller (D-Calif.), Edward Kennedy (D-Mass.), Gordon Smith (R-Ore.) and Thomas Petri (R-Wis.). That’s two Ds and two Rs for anyone who is counting.

Also, for more background on just how much money we waste on inefficiencies in the loan program and the political fight behind it, you can check out www.studentloanwatch.org. Sign up for their list and you will be outraged by what you learn.

You think Sallie Mae needs the money more than you?