Students Rush to Refinance as Deadline Approaches

By KELLY FIELD

But aid officials complain about misleading offers sent by lenders

With the cost of consolidating student loans set to spike on July 1, college students and recent graduates are rushing to refinance their debt, and consolidation companies are scrambling for their business.

In recent weeks, lenders have bombarded borrowers with letters and e-mail messages exhorting them to lock in current interest rates before they rise by nearly two percentage points, to 7.14 percent. At least

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Past Coverage

Interest Rates on Student Loans Are Expected to Hit All-Time Low - May 23, 2003
Refinancing Frenzy Hits Student Loans - June 3, 2005
Bill Would Repeal Loan Provision - June 23, 2006
Many Students Are in the Dark on Pending Interest-Rate Change - June 30, 2000
Facing Competition, Lenders Attack Loan-Consolidation Program - July 19, 2002

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