Higher rates kick in today for student loans.(News)

0 Comments | Daily Herald (Arlington Heights, IL), July, 2005 | by Holmes, Erin

Byline: Erin Holmes Daily Herald Staff Writer Schaumburg High School graduate Joe Macaluso, a student at Bradley University in Peoria, remembers getting the pamphlets - the ones about refinancing to avoid higher interest rates - in the mail. He also remembers popping them straight into the shredder.

The sophomore accounting major says he didn't even consider racing out to consolidate his federal Stafford loans - too much hassle, he says - and, as of today, he'll pay the price. Like others who missed the deadline, Macaluso will be facing new rates that kicked in today, in some cases nearly doubling the interest on loans. Rates on the variable-interest federal Stafford college loans jumped 1.93 percentage points as of this morning. That means a seemingly...

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