Students Beware
Many unscrupulous credit companies in the US are trying to lure you into additional debt after college. Yes, you will almost undoubtedly need student loans unless you are really rich, but it's important to remember that the US Government has school loan consolidation programs available to you that offer lower payments and fixed interest rates to ease the burden of student loans by combining them into one low-payment. More Information about Federal Loans
"In the United States both the Federal Family Education Loan Program (FFELP) and the Federal Direct Student Loan Program (FDLP) include consolidation loans that allow students to consolidate Stafford Loans, PLUS Loans, and Federal Perkins Loans into one single debt. This results in reduced monthly repayments and a longer term for the loan. Unlike the other loans, consolidation loans have a fixed interest rate for the life of the loan.
Consolidation loans have longer terms than other loans. Debtors can choose terms of 10–30 years. Although the monthly repayments are lower, the total amount paid over the term of the loan is higher than would be paid with other loans. The fixed interest rate is calculated as the the weighted average of the interest rates of the loans being consolidated, assigning relative weights according to the amounts borrowed, rounded up to the nearest 0.125%, and capped at 8.25%. Some features of the original consolidated loans, such as post-graduation grace periods and special forgiveness circumstances, are not carried over into the consolidation loan, and consolidation loans are not universally suitable for all debtors."
Source: Wikipedia
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Post edited at 1:46 am on Mar. 16, 2007 by davjs
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