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Rhoades Encourages Students to Consider Loan Consolidation; Feds Raising Interest Rates July 1Senator James J. Rhoades (R-29) is encouraging students, parents and graduates with either federal Stafford or PLUS loans, to consider loan consolidation now before the federally mandated interest rate increase on July 1, 2006. According to Rhoades, the federal Stafford student loan interest rate will be increasing by almost 2 percent, from 5.3% to 6.8% ( and PLUS loan from 6.1% to 8.5%) with the potential of costing borrowers thousand of dollars extra in repayment. "PHEAA estimates that by consolidating before July 1 and locking in the current lower interest rates, a borrower with a $25,000 loan can save an average of $5,580 in interest," said Rhoades. PHEAA consolidation counselors will work with the borrower on all debt management alternatives. Students, parents and graduates should review the potential impact of consolidation on their current loan benefits and on the total cost of their loan before consolidating. Rhoades notes that borrowers can save even more with an immediate interest rate reduction for automatic debit payment and through PHEAA's exclusive Upromise program. The AES Upromise program enables the borrower to pay down their consolidated loans by making everyday purchases from participating companies. To sign up for free, visit: Upromise.com/AES. For more information about consolidation, call toll-free at 1-800-338-5000, visit www.aessuccess.org , or email questions to network@aessuccess.org
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