Students have been fortunate in the past. Interest rates on student loans have steadily been decreasing and are as low as 3.5 percent these days. This is made possible by our kind government picking up part of the tab.

Now, however, student loans are looking to be on the rise. Because student loans are based off of the 30-day Treasury Bill, if the rates on the T-bills goes up then so will the rates on student loans. The interest rate is also reviewed every year on July 1st. So, ho it works is that the US Treasury will auction off the T-Bills on that day and then the government will use that interest rate as a benchmark for the new student loan rate.

Lock in your low rate now so that you will avoid an almost definite increase in interest rates on July 1st. Interest rates on student loans are expected to increase to as much as 6.8 percent. These means that the cost of you borrowing will increase by almost 30 percent. The deadline to apply for student loan refinancing or consolidation is June 30th.

For more information on student loan refinancing visit Refinance Student Loan, Refinance Your Student Loan, or Consolidate Student Loan Online.