Now is the Time to Consolidate

July 1 will bring higher interest rates on student loans

COLUMBUS, OHIO - Student Lending Works, the State of Ohio’s designated nonprofit provider of student loan products, is advising borrowers to consolidate their student loans before July 1, 2007. According to the U.S. Department of the Treasury, the variable interest rates on student loans originated prior to July 1, 2006 will increase by 0.08 percent starting July 1, 2007. Students or parents who have variable interest rate Stafford or PLUS loans can save money if they consolidate before July 1.

To help Ohio students and parents consolidate their loans prior to July 1, Student Lending Works has been authorized by the State of Ohio to make available $100 million in low-cost education funds on a first-come, first-served basis. To learn more about this opportunity, call us at 1-877-256-0066.

Variable interest rates starting on July 1, 2007 are as follows:

• Stafford (in-school): 6.62% vs. 6.54% in 2006
• Stafford (repayment): 7.22% vs. 7.14% in 2006
• PLUS: 8.02% vs. 7.94% in 2006

Rates on Federal loans originated on or after July 1, 2006 remain fixed at 6.8% for Stafford, 7.9% for DL PLUS, and 8.5% for FFEL PLUS.

Student Lending Works is making this information available as part of its mission as the State of Ohio's designated resource for providing information about student loans. As a nonprofit, Student Lending Works is committed to educating and advising borrowers on how to manage their student debt. To support this same mission, the organization also is able to provide Ohio students and families with the best discounts available for education loans in Ohio using tax-exempt funding from the State. Surpluses from Student Lending Works loans will be reinvested into Ohio education initiatives. Learn more about Student Lending Works.

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