Student Loan Consolidation Rates Change, New Rates Beginning

Student-Loan-Consolidation-Rates-Change

The importance of education in society was further recapped with the introduction of the Health Care and Education Reconciliation Act earlier this year by President Barack Obama. Indeed, even former students who have been suffering under the stress of financial difficulty for repayment of the loans will be able to further improve their situation with the legislation as well. With the ability to achieve lower student loan consolidation rates for refinancing, many people will be able to benefit from the outcome.

According to Arne Duncan, U.S. Secretary of Education “Today is a historic day for Americans who are pursuing a college education. We are one step closer to achieving the President’s goal of having the highest proportion of college graduates in the world by 2020. These changes will expand educational opportunities for millions of students and families and will make it easier for them to pay for college.” This statement was made during early in the month of July when the first effects of the bill came into play.

The new student loan consolidation rates hovered around the mark of 2.47%, and the benefits of the new bill were apparent. Other than the changes in the student loan consolidation rates, other benefits included increases in the amount given by the Pell Grant Award and income based repayment amounts as well. In spite of the benefits for former students as well, most of the benefits from the legislation are for present and future loan holders.