It looks like student loan interest rates will go up this July 1, although not as dramatically as in years past. Every year interest rates on Federal Student and Consolidation loans fluctuate based on the bond equivalent rate of 91-Day Treasury Bills, established at the final auction held before June 1 each year. The consolidation rate has gone up eight basis points this year, which may still make a difference for student loan borrowers out of school with unconsolidated student loans. 

Even with a slight increase in the rate, if you have student loans, student loan companies will still be bombarding you with countless consolidation offers in anticipation of the July 1 rate change deadline, the day the slightly higher consolidation rate will take affect. All student loan lenders know how important the option of consolidation is at this time of year, so although you'll be getting a lot of offers to consolidate, there is good reason. Millions of college graduates who have already consolidated their student loans believe it may be the single best way to manage their burden of student loan debt after college.

How Student Loan Consolidation can benefit you:

In addition to the ability to obtain lower interest rates, Consolidation offers you many other benefits:

The benefit of a fixed rate - many student loans carry a variable rate, which seem to change with the tide and can cost students thousands of dollars a year in unnecessary interest rate fees. A Consolidation loan, on the other hand, offers borrowers an interest rate that is fixed for the life of their loan. Often, this fixed rate, which is based on the weighted average of all of your student loans, may be lower than paying each student loan coupon separately! When you consolidate your student loans, just imagine how much extra money you can be put back into your pocket where it belongs. If your Stafford loans were issued before July 1, 2006, they are variable-rate loans, so consolidation may be a worthwhile endeavor for you to take advantage of putting more money in your pocket after college.

A simpler to manage single payment - Consolidation will transform all your payments into one simple payment package. What could be easier than being able to handle your student loans with only one lender, allowing you to pay just one statement and taking the hassle out of making multiple payments to multiple lenders? Not much else!

Lower your monthly payments - By consolidating your student loans you may be able to reduce your monthly payments by as much as half and even extend your repayment term. Think of what you can do with all that extra money!

Borrower Incentives - No matter how small the increase, consolidation rates are still going up July 1st, but some consolidation companies can still give you money-saving interest rate reductions. Some student loan consolidation companies offer borrowers:

Ø      A discount for making consecutive on-time monthly payments.

Ø      A discount for making your monthly payments via secure auto-pay from your checking or savings account.

Ø      A discount for simply consolidating early, during your grace period.

 
Peace of mind - Student loans might have gotten you through college, but after graduation you're ready to take off running towards your future. Who wants a half-dozen student loans dragging them down? By consolidating your loans and taking advantage of all the benefits, you'll have potentially saved yourself thousands of dollars and the reduction of stress will be priceless.

How to Choose the Right Consolidation "Offer" - Consolidation may certainly offer you many worthwhile benefits, but it's important to know which consolidation offer is really best for you. Seemingly attractive cash rebates or unbelievably low interest rates may carry a few unexpected conditions you may not know about until it's too late.

Sure, it's annoying enough to have student loans, and getting buried in indecipherable consolidation offers only makes things more frustrating. That's why OneSimpleLoan® has made available a toll-free number you can call for a clear outlook on the benefits of student loan consolidation.

1-888-MYSTULOANS (1-888-697-8856) is a toll-free consolidation hotline sponsored by OneSimpleLoan, an award-winning Dun & Bradstreet listed independent consulting firm.  This hotline is available during extended business hours to help borrowers through the maze of consolidation offers.

This hotline can be especially helpful between now and the July 1 rate change to help lock in lower rates now while enjoying peace of mind for years to come.

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Paul J. Simino, President and CEO of OneSimpleLoan®, is a major advocate for the student loan borrower and a dynamic member within the student loan industry. As a highly-successful, award-winning Dun & Bradstreet listed professional consulting firm, OneSimpleLoan® specializes in student loan consolidation. It also offers Federal Stafford, ParentPLUS and private loans to help students succeed before, during and after college. For more information, please contact Mr. Simino at psimino@onesimpleloan.com or visit OneSimpleLoan.com.