Students can beat July 1 increases by consolidating online with financialaid.com
SAN DIEGO, Calif.--(COLLEGIATE PRESSWIRE)--Apr 25, 2005--The clock is ticking, and student loan borrowers seeking to fix record-low interest rates have less than three months to complete the consolidation process. Waiting to consolidate after July 1 could result in significantly higher payments for borrowers.
''If interest rates were to change today, student loan borrowers who are new graduates would see student loan consolidation interest rates jump more than 56% -- from 2.875% currently, to 4.5%,'' explained Mike O`Brien, President and CEO of online student loan resource financialaid.com, LLC, a company of CIT Group Inc. (NYSE: CIT). ''To a student with a $30,000 loan, that`s $30 more a month in payments -- and more than $5,000 in additional interest costs over the life of the loan. That`s a big financial burden for new graduates.''
Student loan interest rates are reset each July. Because the Federal Reserve Board has increased interest rates seven times since mid-2004, expectations are high that a significant jump in student loan interest rates will occur when rates are reset this year. If rates stay at current levels, student loan interest rates could increase 1.625% as of July 1, 2005. However, interest rate watchers predict the Federal Reserve Board could authorize additional increases in coming weeks, which would potentially increase student loan interest rates as much as 2%.
Consolidating before the deadline is easy and fast, according to O`Brien. ''Students should investigate their options now, compare borrower benefit programs, and apply online at the lender of their choice,'' he said. ''Not all lenders have identical programs, so it pays to check them out.'' If a borrower`s consolidation application is received by financialaid.com before July 1, he or she can qualify for rates as low as 1.625%* with interest rate reduction programs.
To learn more about loan consolidation and other student finance solutions, borrowers can visit the financialaid.com website at www.financialaid.com, or call toll-free, 888-868-1391.
* The ultimate interest rate for a consolidation loan is calculated as the weighted average of the interest rates on the loans being consolidated rounded up to the nearest one-eighth of a percent. Student Loan Xpress, the lender of this program, reserves the right to modify, expand or discontinue this borrower benefit program or any similar program at any time without notice. Loans disbursed prior to the termination or change date for any borrower benefit will not be affected.
ABOUT FINANCIALAID.COM, LLC
Established in 2000, financialaid.com, LLC, a CIT company, provides parents and students with cost-effective education finance solutions -- before, during and after college. Through its industry-best student loan counselors, expert editorial content and free scholarship and college search engines, financialaid.com provides a comprehensive and easily accessible guide to the college selection, scholarship application, education funding and student loan consolidation processes.
ABOUT CIT
CIT Group Inc. (NYSE: CIT), a leading commercial and consumer finance company, provides clients with financing and leasing products and advisory services. Founded in 1908, CIT has nearly $60 billion in assets under management and possesses the financial resources, industry expertise and product knowledge to serve the needs of clients across approximately 30 industries. CIT, a Fortune 500 company and a component of the S&P; 500 Index, holds leading positions in vendor financing, factoring, equipment and transportation financing, Small Business Administration loans, and asset-based lending. CIT, with its principal offices in Livingston, New Jersey and New York City, has approximately 6,000 employees in locations throughout North America, Europe, Latin and South America, and the Pacific Rim. For more information, visit www.cit.com.
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