Consolidation allows students and parents to combine their separate loans into one and lock in a low fixed interest rate – which could save borrowers thousands of dollars over the life of their loans. 

“Student and parent borrowers have less than one month left to consolidate their college loans before interest rates rise again,” said Abercrombie. “I strongly urge borrowers not to miss this chance  to save thousands of dollars in interest costs on their loans. This is a rare opportunity to reduce your education debt.”

Each year on July 1, the U.S. Department of Education adjusts the interest rates on outstanding college loans. Interest rates on student loans are expected to rise to just over 7 percent, and interest rates on parent loans are expected to rise to 7.8 percent. Student borrowers who consolidate their outstanding loans before July 1 will be eligible to lock in an interest rate as low as 4.75 percent, which would save an average of nearly $3,500 over the life of the loan. Parent borrowers who consolidate before July 1 will be eligible to lock in a rate as low as 6.1 percent over the life of their loan.

Since 2001, tuition and fees at four-year public colleges have increased by 40 percent. The typical student borrower now graduates from college with a record $17,500 in education debt.

House Democrats are hosting an online forum on college affordability, which gives college students, graduates and parents the opportunity to make their voices heard on their experiences with paying for college and on their ideas for how Congress should make college more affordable. House and Senate Democrats have also proposed cutting the interest rates on new college loans in half.

For more information on student and parent loan consolidation information, please visit:

http://www.house.gov/abercrombie/services/student loans.shtml 
 

For more information on how to participate in the college affordability e-forum, please visit:
http://edworkforce.house.gov/democrats/makecollegeaffordable.shtml

For more information on Democratic legislation to cut interest rates in half on new college loans, please visit:
http://edworkforce.house.gov/democrats/pdf/reverseraid.pdf 

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