Interest rates on student loans will increase by 1.93% on July 1 -- the largest single-year increase in the 40-year history of the federal student loan program. According to Chris Studer, Founder and CEO of ScholarPoint Financial, current and former students can beat the July 1 increase and save thousands of dollars in interest by rolling outstanding student loan debt into a fixed-rate federal consolidation loan.

ScholarPoint is an online education lender that offers a unique, cutting-edge method that has made consolidating student loans quick and easy. Unlike many other traditional student loan websites -- which are online lead generation sites for commissioned telephone sales teams -- applying for a Consolidation loan with ScholarPoint can be done entirely online. There are no credit checks, fees, or income verification. Borrowers can save even more if they consolidate while still in-school or during their grace period. Smart borrowers that take advantage of this opportunity can reduce their monthly payments by up to 70% and can also qualify for up to 1.5% in ScholarPoint interest rate discounts for auto payment and on-time payments -- which could make the rate as low as 1.375%.

Federal Stafford and PLUS loans carry a one-year variable interest rate. Every year in July the interest rate charged on a student loan resets based on rates tied to Treasury Bills. For the first time in four years repayment rates on these loans will go up by 1.93% on July 1, leaping from 3.37% to 5.3%.