House Committee Votes to Make Student Loan Consolidation More Expensive

The US House Education Committee has voted to raise the interest rate on fixed rate student loan consolidation. The committee's explanation for the rate hike was that it would help to decrease the national debt.

Hmmm...Something doesn't smell right to me. The House Education Committee expects me to believe that making it even more difficult for college grads to payoff their student loan debt is worth the resultant miniscule savings for the national economy? I don't think so!

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The Deadline Has Passed: What Options Do I Have?

Now that the rates for consolidating student loans have gone up, I'm sure that there are quite a few people out there who are lamenting the fact that they missed the boat. Well, the bottom line is if you have a heavy student loan debt burden (i.e. over $12,000 in student loans) then your long term savings could have been considerable. If you owe less than $10,000 then you really shouldn't worry too much about it, and if you owe less than $5000 then you really didn't need to consolidate anyway.

And remember: you can still consolidate your student loans, and in fact you should seriously consider consolidating if your current interest rate (or your average interest rate if you have multiple student loans) is higher than 6%. If you do end up consolidating, be sure to do your research and consolidate with a reputable company. You don't want to find yourself stuck with one of the fly-by-night consolidation companies that have recently come into existence during the latest student loan consolidation rush.

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