(Washington, DC): -- Congressman Michael R. McNulty (D-Green Island) today joined many of his House Democratic colleagues to urge students and their families to consolidate federal college loans before July 1, 2006, when interest rates on outstanding loans are expected to rise to their highest rate in six years.

"Borrowers have less than one month to consolidate their college loans before interest rates rise again," the congressman said. "Consolidation allows students and parents to combine their separate loans into one, and lock them in at a low interest rate, potentially saving thousands of dollars over the life of the loans."

McNulty's comments were echoed by the leading Democratic voice on education policy. “I strongly urge borrowers not to miss this opportunity to save thousands of dollars in interest costs on their loans,” said Rep. George Miller (D-California), the senior Democratic member of the House Committee on Education & the Workforce. “Do not delay: consolidate your loans as soon as possible, and certainly before it’s too late. This is a critical way to reduce your education debt.”

Each year on July 1, the U.S. Department of Education adjusts the interest rates on outstanding college loans. Interest rates on student loans are expected to rise to just over 7 percent and interest rates on parent loans are expected to rise to 7.8 percent. Student borrowers who consolidate their outstanding loans before July 1 would be eligible to lock in an interest rate as low as 4.75 percent, which would save an average of nearly $3,500 over the life of the loan. Parent borrowers who consolidate before July 1 would be eligible to lock in a rate as low as 6.1 percent over the life of their loan.

“With rapidly increasing college loan volume, it is critical for students to take advantage of any opportunity available to reduce their debt,” said Rep. Dale Kildee (D-Michigan), the senior Democrat on the Subcommittee on 21st Century Competitiveness. “Consolidating by July 1 will save students money —potentially thousands of dollars — easing the financial burdens that limit their career choices.”

Since 2001, tuition and fees at four-year public colleges have increased by 40%, and the typical student borrower now graduates with a record $17,500 in education debt.

For more information on student and parent loan consolidation information, please visit: http://edworkforce.house.gov/democrats/studentloanconsolidation.html.

For more information on how to participate in the college affordability e-forum, please visit: http://edworkforce.house.gov/democrats/makecollegeaffordable.shtml.

For more information on Democratic legislation to cut interest rates on college loans in half, please visit: http://edworkforce.house.gov/democrats/pdf/reverseraid.pdf.

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