WASHINGTON, DC– Representative George Miller (D-CA) today urged students and parents to consolidate their federal college loans this week before the July 1, 2006 deadline, when interest rates on outstanding loans are expected to rise to their highest rate in six years. Consolidation allows students and parents to combine their separate loans into one and lock in a low fixed interest rate – which could save borrowers thousands of dollars over the life of their loans.

“Student and parent borrowers only have a few days left to consolidate their college loans before interest rates rise again. I strongly urge borrowers not to miss this opportunity to save thousands of dollars in interest costs on their loans,” said Miller, the senior Democrat on the House education committee. “Do not delay: Consolidate your loans before it’s too late. This is a critical opportunity to reduce your education debt.”

Each year, on July 1, the U.S. Department of Education adjusts the interest rates on outstanding college loans. Interest rates on student loans are expected to rise to just over 7 percent and interest rates on parent loans are expected to rise to 7.8 percent. Student borrowers who consolidate their outstanding loans before July 1 would be eligible to lock in an interest rate as low as 4.75 percent, which would save an average of nearly $3,500 over the life of the loan. Parent borrowers who consolidate before July 1 would be eligible to lock in a rate as low as 6.1 percent over the life of their loan.

Since 2001, tuition and fees at four-year public colleges have increased by 40 percent. The typical student borrower now graduates from college with a record $17,500 in education debt.

Miller has made college affordability a major theme in his work in Congress. He is hosting an online forum on college affordability on his committee website, giving college students, graduates and parents the opportunity to tell Congress about their experiences with paying for college and to share their ideas about how Congress should make college more affordable.

Miller, along with his Democratic colleagues in the House and Senate, has also sponsored legislation to cut the interest rates on new college loans in half.

For more information on student and parent loan consolidation information, please visit:
http://edworkforce.house.gov/democrats/studentloanconsolidation.html

For more information on how to participate in the college affordability e-forum, please visit:
http://edworkforce.house.gov/democrats/makecollegeaffordable.shtml

For more information on Democratic legislation to cut interest rates in half on new college loans, please visit:
http://edworkforce.house.gov/democrats/pdf/reverseraid.pdf

We post many documents in .pdf format. Please visit Adobe to download the free viewer if you do not already have this capability.