Source: The Charlotte Observer

If you consolidate before July 1, you could get a rate as low as 2.875 percent. Borrowers already in repayment can lock in a rate as low as 3.375 percent. Left unconsolidated, federal student loans could go as high as 8.25 percent.

Learn more about Student Loan Consolidation

The Education Department announced that students who are still enrolled in college may now consolidate federal student loans. Students may be able to save over $2,000 in the long term by consolidating early. Current interest rates are only 2.77 percent. However, it is expected that rates may go up to 5 percent when the rate changes are announced July 1.

The only drawback for students who consolidate early is that they forfeit the grace period. Normally college students have 6 months between graduation and the date that their first student loan payment is due.

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AP / Tucson Register
Washington Post