Thus, students applying for loans, known as the Stafford Loan, payable from 1 July, a fixed interest rate of 7.14 percent, representing 1.84 percent more than the current rate of 5.30 percent, reported in recent days as the Department of Education United States.

This increase the interest student loans could affect approximately two of every three Americans and Hispanic students who benefit from federal loans to finance college and most go to the government, according to the Statistics Center of the Department of Education.

Rob LaBreche, president of Consumer Marketing College Loan Corporation, San Diego, California stated that “this is the end of the era of low interest rates on federal student loans.

“But there is good news: students, parents and alumni have a few weeks to consolidate loans before it is enacted the new interest rate, which will mean significant savings,” he added.
The term to consolidate loans expires on June 30. To this end, LaBreche estimated that a Recent Graduates Student Loans in 2006 are $ 20,500, could save $ 3,245, during the 10 years it has for the balance of your debt.

“Graduates can take advantage if you consolidate your debts,” said LaBreche.

The beneficiaries, who will begin to pay off their loans six months after the end of the academic year or grace period, will pay a fixed interest rate of 4.70 percent, while if not consolidate credit, the rate would rise to 7.25 percent.

The average debt of graduates is about $ 19,000, but many students have obligations over $ 40,000. This amount can vary each year, since the Department of Education links the student fees at the rates of Treasury bills in late May, and this year agreed to the highest since 2001.

The increase could further affect Hispanic graduates and that 58 percent of the population has a high debt, according to data from the Census Bureau United States.

NGO says the Hispanic graduate typically earns a salary below $ 10,000 than their peers, and requires monthly spend 8 percent of their income to pay the debt contracted by the university.

A representative from Wells Fargo Bank, who requested anonymity, said that students who benefit from these loans have to do math and get help to consolidate their loans in the coming days. Otherwise, you will face varying interests.

The College Board reported that private student loans have skyrocketed in the last ten years, going from $ 1,300 million between 1993 and 1994 to $ 10.600 million in 2003-2004. While the government funded at the $ 56.800 million last year. Therefore, the difference may be the cost of a loan from the government, said the representative of Wells Fargo.

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