National University

In this issue

Merging Student Loans Recommended Before July

Rising rates and a new federal law both favor consolidation

Financial advisers nationwide are encouraging college students with multiple student loans to consolidate them into a single loan before July.

Since last year, college students have been rolling their debt into a single loan before graduation to benefit from historically low interest rates. A recent deficit-reduction bill passed by Congress will prevent lenders from offering "in-school" consolidation after June 30, forcing college students to wait at least six months after graduation before they can bundle their student debt. Graduates who haven't yet consolidated may also want to act before summer, since the rates on federal student loans are likely to climb July 1.