Search
 

CUs Brace for One of Lowest Student Loan Consolidation Rates in History

WASHINGTON - As credit unions continue to make strides with student loans, competing head on with traditional lenders, a new lower consolidation rate this summer could prove to be more of a boon. On July 1, the interest rate on a Stafford loan will drop to 3.37%, the lowest percentage...

By Staff Writer | Updated on June 08, 2004

WASHINGTON – As credit unions continue to make strides with student loans, competing head on with traditional lenders, a new lower consolidation rate this summer could prove to be more of a boon. On July 1, the interest rate on a Stafford loan will drop to 3.37%, the lowest percentage since the Federal Consolidation Loan Program (FCLP) was launched in 1986. Stafford loan interest rates for the 2004-2005 school year were determined by a Treasury bill auction held earlier this week. If borrowers choose to consolidate, the 3.37% will be locked for the life of their loans. Congress is also exploring the idea of changing FCLP’s structure to set a variable rate in lieu of a fixed rate. Legislators say the idea is that the borrower can save more when rates are low. USC Credit Union in Los Angeles, University FCU in Austin, Texas, Navy FCU, Security Service FCU in San Antonio and America First CU in Riverdale, Utah were recently ranked among the nation’s top loan originators through the Federal Family Education Loan Program.

Complete your profile to continue reading and get FREE access to CUTimes.com, part of your ALM digital membership.

Your access to unlimited CUTimes.com content isn’t changing.
Once you are an ALM digital member, you’ll receive:

  • Critical CUTimes.com information including comprehensive product and service provider listings via the Marketplace Directory, CU Careers, resources from industry leaders, webcasts, and breaking news, analysis and more with our informative Newsletters.
  • Exclusive discounts on ALM and CU Times events.
  • Access to other award-winning ALM websites including Law.com and GlobeSt.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Recommended Stories

Credit Union Times

Join Credit Union Times

Don’t miss crucial strategic and tactical information necessary to run your institution and better serve your members. Join Credit Union Times now!

  • Free unlimited access to Credit Union Times' trusted and independent team of experts for extensive industry news, conference coverage, people features, statistical analysis, and regulation and technology updates.
  • Exclusive discounts on ALM and Credit Union Times events.
  • Access to other award-winning ALM websites including TreasuryandRisk.com and Law.com.

Already have an account? Sign In Now
Join Credit Union Times

Copyright © 2024 ALM Global, LLC. All Rights Reserved.