Student Loan Rate Set ToJump

May 31, 2006, 1:00 a.m. EDT 1 Min Read

WASHINGTON - (05/31/06) Millions of college studentsare expected to refinance their outstanding student loans over thenext month as rates are expected to rise by as much as 2% on July1. Thats when rates on Stafford loans are expected to climbby about 2% to 4.7% and rates on PLUS loans, currently at 6.1%, areexpected to jump to as much as 8.1%. Rates on Stafford loansalready in repayment are also set to rise by 2% to around 5.3%.Several lenders, including student loan giant Sallie Mae, areoffering special deals on consolidation loans. Sallie Mae, forexample, is offering borrowers with at least $10,000 outstanding adiscount of 1% on a consolidation loan if they make their first 36payments on time. NelNet Inc., another student lender, is alsooffering a 1% discount rate on consolidations.

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