(WASHINGTON, DC) – Congressman Dennis Moore (Third District – Kansas) today strongly urged students and parents to consider consolidation of their federal college loans before July 1, 2006, 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 lower fixed interest rate – which could save borrowers thousands of dollars over the life of their loans.

“I strongly urge borrowers to consolidate their loans as soon as possible, and to not miss this opportunity to potentially save thousands of dollars in interest costs on their loans,” said Moore. “With the rapidly increasing college loan volume, it is critical for students to take advantage of any opportunity available to reduce their debt.”

Each year on July 1, the U.S. Department of Education adjusts 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.