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June 25, 2005
 
RAHALL REPORT: West Virginia Students: Act Now to Save Money

From the desk of U.S. Rep. Nick Rahall (D-WV)
Representing West Virginia's 3rd District
 
Washington, D.C. (HNN) — Families throughout southern West Virginia are well aware that the cost of college is high and continues to get higher. However, as many students must take out loans to cover the cost of higher education, they may not be completely aware of how much they will have to pay after their college days have passed. If you are a student or a recent alum, or if you know anyone who has student loans, then take a few minutes to read this column and find out an easy way to save money if you act before June 30, 2005.
 
Whether you are currently enrolled in college and haven't started worrying about your loans or whether you are out of school and are paying your loans each month, you have the ability to consolidate the loans and take advantage of the current low interest rates by getting a loan fixed at today's low rates. I urge all students of our Colleges and Universities in West Virginia to take a close look at this consolidation process. Interest rates are set to go up on July 1, 2005t so the time to act on this is now.
 
According to analysts, it is expected that interest rates will rise to as much as 5 percent from the current rate of 2.77 percent. Consolidating current loans into one loan locked in at the current rate before it is raised on July 1st could save thousands of dollars for each student. This is an opportunity that students in our state with college loans should not miss.
 
Anyone with a Stafford loan or a loan from a bank or other lender can combine them at this low interest rate if they make a move on it before the opportunity expires on June 30, 2005. Of course, consolidating student loans may not be the right choice for every student. For example, many student loans allow a six month grace period so students do not have to start paying their loans until they have been out of school for six months. Traditionally, when loans are consolidated the student would lose this grace period and must begin paying immediately. Luckily, even in this situation there is help as many lenders are now offering a grace period of some length for current students consolidating loans.
 
The small nuances and differences between the various types of loans make the consolidation process case specific. But, everyone with student loans has the opportunity to save money with a consolidation, which is why I urge everyone with loans to investigate the possibility of loan consolidation by going to a few important websites and finding out what your options are. The first website is The Smart Guide to Financial Aid, http://www.finaid.org/, which has loan calculators to help you figure out your potential savings. Secondly, if you don't know your loan records and need to find the information, you can visit the National Student Clearinghouse Web site at http://www.studentclearinghouse.org/, and click on "students and alumni," then on "loan locator" to help find your information. Finally, and most importantly, with your loan information in hand, you can go to the college-loan consolidation section of the government website http://www.studentaid.ed.gov/ to help consolidate your loans with a low interest rate and save money.
 
It doesn't take much time to get all this done, which is good because time is crucial for students with loans. This is one way that every student may be able to ease their debt, save thousands of dollars and solidify their personal economic future this week. I cannot stress enough that the deadline for taking advantage of the current low interest rates is Thursday, June 30, 2005. On July 1, 2005, it will be too late, so I urge everyone once again to consider consolidating your student loans this week!
 
Contact information for Congressman Rahall:

On the web at: http://www.rahall.house.gov/