Etheridge Urges N.C. Families to Consider Student Loan Consolidation By July 1

News Release
Congressman Bob Etheridge
North Carolina

June 15, 2006

Contact: Joanne Peters
Phone: (202) 225-4531

Etheridge Urges N.C. Families to Consider Student Loan Consolidation By July 1

WASHINGTON - U.S. Rep. Bob Etheridge (D-Lillington) today encouraged N.C. students and families to consider consolidating their college loans by July 1, when interest rates are set to rise an average of 2 percent, to their highest rate in years.

The interest rate increase is a result of a budget bill signed into law in February that cut $12 billion in federal funding for student loans. Etheridge, who chairs the House Democratic Caucus's Education Task Force, helped lead the fight to defeat the bill. The interest rate hike could add $5,800 to the debt load of the typical financial aid recipient who already carries a debt load in excess of $17,000.

"Education is the great equalizer in our society. It evens the playing field so that anyone who works hard can achieve his or her dreams. Affordable access to college is the key to the American Dream for working families," said Etheridge. "If students act before July 1 they could potentially save money, even thousands of dollars in some cases. I encourage all students and families with loans to act now to determine if consolidation will save them money."

The increased interest rates will be the highest in six years. By consolidating before then, borrowers may be able to lock in rates as low as 4.75 percent, which would save the typical undergraduate borrower almost $3,500 over the life of the loan. Etheridge cautioned that students and families should research their options first to decide if consolidation is the best option for them.

Borrowers can find more information and resources about loan consolidation on Etheridge's website, www.house.gov/etheridge.

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