INTEREST RATES ON STAFFORD AND PLUS STUDENT LOANS TO INCREASE

 HARRISBURG, JUNE 13 – State Sen. Connie Williams reminds individuals and students with federal Stafford and PLUS loans that interest rates will increase effective July 1^st.

 “Even with higher interest rates, these student loans are good values,” Williams said. “Armed with the knowledge of the impending interest hike, people may want to consider their options. One of those options is loan consolidation in advance of the interest rate increase.”

 The Stafford loan interest rate is set to increase to 6.8 percent (from 5.4 percent) and the PLUS loans to 8.5 percent (from 6.1 percent).

 The Pennsylvania Higher Education Assistance Agency has loan consolidation counselors available to work with borrowers considering consolidation. PHEAA estimates that consolidating before July 1 and locking in the current lower interest rates could save a borrower with a $25,000 loan an average of $5,580 in interest.

 For more information about consolidation, people may call 1-800-338-5000, or visit www.aessuccess.org, or e-mail questions to network@aessuccess.org.