"Consolidate student loans now, or wait? That's the question for some recent college graduates," reports The Baltimore Sun. "Consolidate now, and you may be able to lock in discounts that won't be available in October. Wait until July, and there's a chance you may get an even lower interest rate for the life of the loan. There are two things going on that can affect the decision to consolidate now or later. Congress recently passed legislation - expected to be signed any day now by the president - that will cut nearly $21 billion in federal subsidies to student loan providers on new loans made as of October. Lenders have responded by saying they will either reduce or eliminate discounts for borrowers with loans made after this month. The other issue borrowers need to weigh is the outlook for interest rates. Federal loans issued since July 2006 carry a fixed interest rate of 6.8 percent. But loans made earlier carry a variable rate that adjusts each July. Federal Reserve policymakers recently cut a key interest rate, which influences the rates on variable-rate student loans."

You can read the complete September 25, 2007 Baltimore Sun article on-line.