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Ashley Hayes reporting Student debt is at an all time high in Utah. In just a few weeks the cost of paying off those debts will go even higher.
July 1st, interest rates on federal loans will jump up 1.84 percent. The rate for new loans will climb from 5.3 to 6.8 percent. That means students have a couple weeks to consolidate their student loans and lock in the current rate.
David Feitz, Director Utah Higher Edu Assist Authority: "In combination what we've got.....can be pressing to a person's budget."
Eyewitness News followed the Clark family on their tour of the University of Utah campus this afternoon. With one daughter entering medical school and another daughter preparing to go to college for the first time, they are familiar with the costs.
Kit Clark, Daughters in college: "Every dollar extra that you have to pay is tough. But as parent, you do the best you can."
Andrea Clark, Medical Student:"I had a lot of friends that were getting jobs, and having $30,000 worth of loans. It was tough."
Looking at paying for her tuition, the Clark's youngest is taking this all in to account as she selects a school.
Christy Clark, Touring colleges: "Looking at a lot of student loans and scholarships. Being an out of state student, I am going to have to pay more tuition. My parents are helping me out. I'm trying to figure it out."
Financial analysts say by consolidating loans before the first of July, students can save as much as $5,000 dollars in payments over the span of a $20,000 loan.
Because of this deadline, lenders are trying to entice students to consolidate with their companies. Financial analysts say students should know that consolidating is a free service. There should be no prepayment requirements, and no credit checks.
