Interest Rate on Student Loans to Go Up

Interest Rate on Student Loans to Go Up

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SALT LAKE CITY (AP) -- College students may want to consolidate their student loans now -- because interest rates are expected to go up.

Right now, the interest rate on most federal student loans, such as the Stafford for students and PLUS for parents is almost three-point-four percent.

However, starting on July 1st, that rate will jump to five-point-26-pecent. That's according to David Feitz at the Utah Higher Education Assistance Authority.

Feitz said now is the time to consolidate. He said it's better to lock in the fixed pre-July rate. He also said the interest rates right now are the lowest in the history of the student loan program.

Feitz said the average Utah undergraduate has around 14-thousand dollars in federal loans. He said the national figure is about 20-thousand dollars.

(Copyright 2005 by The Associated Press. All Rights Reserved.)

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