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<June 7, 2006> FOR IMMEDIATE RELEASE—June 7, 2006—Washington, D.C.— Congresswoman Madeleine Z. Bordallo is joining other Members of Congress in urging students and parents to consolidate their federal college loans before July 1, 2006. 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. “Federal student loans are a major source of college financing for many of our college students, both on-island and off-island. I urge students to take advantage of this opportunity to consolidate loans and to lock in the lower interest rate currently available which will help reduce the cost of a college education,” Bordallo stated. Every year on July 1st, 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 relationship 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 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 over $17,500 in debt. Members of Congress are hosting an online forum on college affordability, which gives college students, graduates and parents the opportunity to make their voices heard on their experiences with paying for college and on their ideas for how Congress should make college more affordable. House and Senate Democrats have also proposed cutting the interest rates on new college loans in half. ### Contact: Alicia Chon in |
