Congresswoman Carolyn McCarthy is strongly urging students and parents to consolidate their federal college loans before July 1, when interest rates on outstanding loans are expected to rise to their highest rate in six years. Consolidation allows students and parents to combine their separate loans into one and lock in a low, fixed interest rate, which could save borrowers thousands of dollars over the life of their loans.

"I urge every student loan borrower to seriously consider consolidating their loans before July 1, when interest rates will increase dramatically," McCarthy said. "Consolidation may save you thousands of dollars in education debt and reduce your future student loan payments substantially."

Each year on July 1, the US 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.

"The price of a college education continues to increase every year," McCarthy continued. "Consolidation is one of the only ways students and parents can proactively reduce the cost of higher education."

Since 2001, tuition fees at 24 public colleges have increased by 40 percent. The typical student borrower now graduates from college with a record $17,500 in education debt.

For more information on student loan consolidation, visit McCarthy's website at www.carolynmccarthy.house.gov.