As a college student, you’ve made an art out of being thrifty. Yet just when you thought you’d found every last way to save money – used books, all-you-can-eat pasta specials, cell calls after 9 p.m. – think again. If you have student loans, your opportunity to save thousands of dollars through a debt management strategy called consolidation is now. And it won’t last long.
CollegeInvest, Colorado’s higher education financing resource, reminds students that as of July 1 interest rates are expected to go up once again. Consolidation, a process that allows borrowers to lock-in today’s lower interest rates on their student loans, can reduce monthly payments; sometimes by as much as half.
“We all like to save money where we can,” says Lynn Tindall, chief operating officer of CollegeInvest. “With expected interest rate increases and changes as a result of the Deficit Reduction Act, the time to consolidate for borrowers graduating or continuing their education is now.”
Focused on making college more affordable, CollegeInvest helps students through the consolidation process and can potentially save them thousands of dollars over the life of their loan.
The extra money provided by consolidating will make a big difference to seniors or recent graduates who are just starting their career. For students who have more college to come, the next few months offer the opportunity to cash in on consolidation as well. One provision in the Deficit Reduction Act eliminates in-school consolidation after June 30. Thus, students who have accumulated debt up to this point in their education are advised to move quickly and take advantage of this program before it expires.
“Colorado students, whether they are freshmen, sophomores, juniors or graduating seniors, should consider loan consolidation. Locking in today’s low interest rate means long-term savings and that’s good news no matter where you are in your education.” adds Tindall.
CollegeInvest is a not-for-profit division of the Colorado Department of Higher Education that helps Colorado students and families break down the financial barriers to college. Since 1979, CollegeInvest has helped more than 500,000 families pay for college through low-cost student and parent loans, college savings plans, scholarships, free information and planning tools.
For more information, visit www.collegeivnest.org or call 1-800-COLLEGE (outside Colorado dial 1-800-448-2424).
