On July 1st, Student Loans from the federal government will rise two percent, which can add up to quite a lot: for instance, an additional $10,000 by the time you pay off a $50,000 loan. Ouch.

The steeper rates will translate into higher monthly payments for borrowers.

For example, someone who's already graduated and owes $20,000 will see payments rise to $234 a month vs. $215 today. Over the loan's lifetime, that works out to about an extra $3,200 in interest.

However, lenders say borrowers can avoid increases by consolidating variable-rate loans into fixed-rate ones by July 1.

For example, Sallie Mae currently offers fixed loans with rates permanently locked in as low as 4.75 percent. That's far below the 7.14 percent variable rate students who've already graduated will begin paying next month.

Be sure to contact your lender before July 1st to arrange a fixed rate loan package!

(Photo Source: Bauer Photos)