Current and former college students across Iowa are racing to consolidate their student loans this week — before Friday. And those who aren’t, should be, according to financial advisor Rockne Bergman. He says the interest rate for student loans is going to take a big jump within a few days — on July first. Bergman says the new interest rate will be four-point-seven percent. The current interest rate from July first, 2004 to June 30, 2005 is two-point-seven-seven percent. When students consolidate, he says they can lock in that lower interest rate and potentially save a pile of money over the lifetime of their loans. If they leave school with, for example, 120-thousand dollars in debt, they will be able to save, literally, thousands of dollars over the life of that loan by consolidating and locking in the lower rate.
