WOZNIAK: LOCK IN LOWER STUDENT LOAN INTEREST RATES TODAY

JOHNSTOWN, June 24, 2005 – Pennsylvanians who are borrowing student loans can lock in a lower interest rate by consolidating loans before the expected rate increase, according to State Sen. John N. Wozniak.

“Interest rates will go up as of July 1, 2005, so if you want to ease your financial burden, look into consolidation and other repayment options,” said Wozniak (D-Cambria/ Clinton/ Centre/ Clearfield/ Somerset). “The rate is at a historic low right now, so the smart choice would be to lock in that number before the rate hike.”

The interest rate for subsidized and unsubsidized federal Stafford Loans during the repayment period increase from 3.36 percent to 5.3 percent.

The interest rate for subsidized and unsubsidized federal Stafford Loans during the in-school grace and deferment periods is expected to increase from 2.77 percent to 4.7 percent. The interest rate for Parent Loans also is expected to increase from 4.17 percent to 6.1 percent.

By consolidating student loans, borrowers often can lower their monthly payments or combine multiple loans into one new loan, Wozniak said. The ADS/Upromise Program also allows borrowers to pay down their consolidated loans by making everyday purchases from participating companies.

Wozniak also noted that consolidation counselors from American Education Services (AES) and the Pennsylvania Higher Education Assistance Agency (PHEAA) are available to work with borrowers on consolidation and other debt management issues.

For more information on AES/PHEAA loan consolidation and the Upromise Program, visit: www.senator-wozniak.com. To speak with an AES/PHEAA loan consolidation counselor, call 866-803-3706.
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