Historic Lows For Student Loan Interest Rates

ROCKY HILL — Federal student loan interest rates will once again fall to historic lows for the fourth consecutive year. The United States 91-day Treasury bill (T-bill), auctioned earlier this week, established the 2004-05 student loan interest rates, saving money for student and parent borrowers throughout the nation.

According to the Connecticut Student Loan Foundation (CSLF), the lower interest rates are good news for student loan borrowers. The new interest rates, effective July 1, 2004 to June 30, 2005, are Stafford Loans in repayment will drop from 3.42 to 3.37 percent; Stafford Loans in an in-school or grace period will drop from 2.82 to 2.77 percent, and PLUS loans will drop from 4.22 to 4.17 percent.

The lower rates are also good news for borrowers interested in loan consolidation. The interest rate for a consolidation loan is calculated by taking the weighted average of a borrower’s underlying loan(s) and rounding up to the nearest eighth of a percent. By consolidating after July 1, when interest rates fall, applicants can take advantage of the new rate(s) and lock in a lower, fixed rate for the life of their loan.

For more information about student loans and the interest rate reductions available through CSLF’s First Rate Student Loan programs, visit www.cslf.com or call 800-237-9721, ext 442.