Student Loan Consolidation is Silver Lining for Class of 2004

Quincy, MA April 12, 2004--College graduation is just around the corner, along with a nasty surprise for the class of 2004 - higher average student loan balances than ever before. According to the National Student Loan Survey, in 1997, the average undergraduate came away with $11,400 in debt; this year, the average undergraduate will leave with an estimated $21,900. Graduate student debt has followed the same trajectory, rising from $21,000 in 1997 to an estimated $35,980, due largely to tuition increases over the past few years.

Most student loans have repayment terms which include a ten year repayment schedule. For the average undergraduate, that's an estimated $216 per month, about the cost of an economy car payment. Graduate students pay the equivalent of a mid-range BMW with their student loan payments. All of this assumes that the current 31-year low in interest rates will remain the same in the next ten years, an unlikely scenario. Marketvector.com already projects the 91-day T-bill rate (which is used annually to determine student loan rates) to rise by approximately 0.5%, adding an additional $1,000 or more to the total interest paid for the average student loan.

The silver lining in what is otherwise a fairly dark cloud is that federal student loan consolidation can help to reduce these payments by extending the loan term and locking in current, low fixed rates. Joe Cronin, director of StudentLoanConsolidator.com, notes, "Federal student loan consolidation helps new graduates be more flexible in the kinds of jobs they look for by not immediately enslaving them to unbearable loan payments. Consolidating with today's rates (which expire July 1, 2004) will save the average graduating student 44% on their monthly payments. Students with higher loan balances can save even more, up to 58% per month."

Graduates and students graduating prior to July 1, 2004 are urged to consolidate as soon as they are out of school. Locking in current rates can save thousands of dollars, as long as graduates apply by May 15, 2004. Students can consolidate their loans by visiting http://www.StudentLoanConsolidator.com and applying online, or calling 877-328-1565.





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