The countdown has begun. On July 1, you can expect your student loans to suddenly cost a whole lot more. The Feds are raising the interest rate; Bush approves, passing bills of his own. So much for helping the poor guys out here.

Here’s how you can expect your student loans to jump from their current rate:
– Stafford in repayment: +1.5%
– Stafford in-school or grace period: +1.9%
– PLUS: +2.4%

Though wait, you can lock in the low interest rates today, which is your weekend homework. You may already be getting endless fliers in the mail from companies urging you to consolidate your loans. Give them a call or check the advertisements we have in the lower left ads on occasion. I did it this week’too easy!

Why should you consolidate?
Loans like Stafford and PLUS are variable, meaning that the interest rate fluctuates, which is great for dropping interest rates. Too bad interest rates are expected to go UP, UP, UP. Consolidating your loan(s) basically means your government loan will be paid by the consolidating company, and now you’ll owe them the payments at a fixed rate. They throw in little incentives like .25% less interest rate for automatic payments from your bank and 1% less interest after paying on time for 36 months.

So consolidate your loans, whether you’re in school, in your 6 month deferment/grace period, or out digging the ditches to pay those suckers off. Just like that, you’ll be saving yourself thousands in interest payments. Not a bad way to reach those millions. (It’s like those Geico commercials– 15 minutes or less could save you thousands on your…)