1. Interest rates on Federal education loans are set by Congress and vary annually based on the rate of 91-day Treasury bills set at the last weekly auction in May. New rates go into effect each July 1st. On July 1st 2005, for the first time in five years, student loan interest rates increased by almost 70% making loans substantially more expensive than they were between July 1st 2004 and June 30th 2005.

With the Prime Rate (as of January 2006) at 7.0% and expected to continue to climb, current Federal student loans interest rates, as low as 4.70% are unmatched financial values. At no cost and with lower monthly payments, Federal student loan consolidation locks in and protects your low student loan interest rate for the life of the loan with fixed simple interest rates with no prepayment penalties.

Consolidation is very simple in concept but complicated in the nature of processing and choosing the best options. Consolidation is unique in that it is based upon the diverse and distinctive history of each individual borrower. Loan amounts, loan types, future personal and professional plans and goals make for no two consolidations being the same. Because of this complexity, you are encouraged to educate yourselves and work with trustworthy and knowledgeable consolidation specialist so as to inform your consolidation and money management decisions.

One of the largest single financial obligations you will incur is the cost of your education. Student loan consolidation is a fundamental and perhaps along with your money management understanding and habits the most important financial instrument available in managing educational debt. Consolidation, when effectively combined with simple money management practices enhances your ability to manage and accumulate funds for those things that are uniquely important to you.

Unless your personal and professional objectives, preferences and debt are informed, educated and in-tune with money management skills and personal savings/investing and spending behavior then consolidation is grossly underutilized. Consolidation is much more than lowering monthly payments. Consolidation provides the occasion to take full advantage of money management opportunities to responsibly fulfill personal and professional commitments and goals as well as build assets. Consolidation coupled with the knowledge, ability and disciple to borrower the minimum necessary to pay for your education and basic living needs not lifestyle (borrow less), live below one’s means, use professional financial advisors and save and invest 10 to 20 percent of your household income represents vital long-term benefits and advantages of consolidation.