New Law To Ease Student LoanConsolidations

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WASHINGTON - (06/19/06) – Congress approved legislationlast week repealing the ‘single holder rule’ forstudent loans that forced students who borrowed all of theirfederal loans from one lender to consolidate with the same lender.The loan will allow borrowers to shop around for the best loan dealjust as the rate on Stafford and PLUS loans is scheduled to rise totheir second-highest rate on record. On July 1, Stafford loans withadjustable rates will rise by 1.84% to 7.14%; and Stafford loansfor students in school will increase by the same amount to 6.54%.PLUS loans for parents who borrowed for their children will risefrom 6.1% to 7.94%.

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