SOUTH TEXAS STUDENTS URGED TO

CONSOLIDATE SCHOOL LOANS BY JULY 1

WASHINGTON, D.C. - Congressman Solomon P. Ortiz today strongly urged students and parents to consolidate their federal college loans before July 1, 2006, when interest rates on outstanding loans are expected to rise to their highest in six years. Consolidation allows students and parents to combine their separate loans into one and lock in a low fixed rate - which could save borrowers thousands of dollars over the life of their loans.

"Students and parent borrowers have under a month 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 cost on their loans," said Ortiz. "Do not delay: Consolidate your loans as soon as possible and certainly before its too late. This is a critical way 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.

"With the rapidly increasing volume of college loans, it is critical for students and partents to take advantage of any opportunity available to reduce their debt," said Ortiz. "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. All this comes at a time when this Congress has - repeatedly - cut funding for education at all levels, including student college loans."

House Democrats 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. Ortiz, along with colleagues in the House and Senate, has also proposed cutting 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