What happens if you don’t consolidate?
While just about everyone is on about the benefits of consolidating, quite a few people want to know what happens if you DON’T consolidate. Well, for one, not consolidating to a fixed-rate loan will leave recipients vulnerable to possible future increases in variable rate loans, according to experts. Toledoblade.com reports:
After July 1, Stafford loan rates will be locked at an average of 6.8 percent, while variable interest rate loans can still increase up to 8.25 percent in future years. The legislation will set a fixed rate for any new loans or consolidated loans and will also prevent students who are not graduating from consolidating after June 30.
Read more:Student loan rates to increase 2 percent
If you enjoyed this article, please bookmark it at del.icio.us »