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Article: Econ 101: Saving on student loans; Consolidate debt by June 30 or pay more interest.(NEWS)
- Article from:
- Star Tribune (Minneapolis, MN)
- Article date:
- June 8, 2005
- Author:
CopyrightCOPYRIGHT 2005 Star Tribune Co. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Se Young Lee; Staff Writer
Don't be late. Consolidate.
Failing to consolidate college student loans by June 30 could cost current students, recent graduates and those already repaying their loans thousands of dollars.
That's because higher rates that come into effect on July 1 will slap almost 2 percentage points more on interest rates for student loans.
For example, the interest rate for federal Stafford loans in repayment will increase 1.93 percentage points to 5.30 percent. That means that those who start repaying $20,500 in federal loans this year will pay about $24,200 total if they consolidate into a 10-year payment plan ...