November 17, 1998

Media Contact: Chris Collins, (619) 594-4974

 

Former San Diego State University Student Loan Borrowers

Can Lower Their Payments by Consolidating Now

 

Lower interest rates that are available for a limited time can help SDSU student loan borrowers reduce their monthly payments, but they must act quickly. A consolidation loan is available through January 31, 1999, to anyone who is not in school or accepted for enrollment in school and is making payments on his or her student loans. The lower rate is also available to currently enrolled or admitted borrowers, but only for those who have Direct Loans and/or parents with PLUS loans.

By consolidating student loans now, most borrowers can save at least $50 for every $1,000 of debt during the repayment of their loans. Thus, a student borrower at SDSU who graduates with $13,000 in debt can save approximately $700 over a ten-year repayment period. Additional benefits are also available, including an extension of the repayment period and recalculation of loan payments based on a percentage of the borrowers' income.

There is no charge for consolidating your loans and a single loan or previously consolidated Direct Loan can qualify for the lower rate. Beginning on February 1, 1999, the formula for computing interest rates will change and borrowers could be paying up to 0.8 percentage points above the rate available now. To apply or receive additional information about the Direct Consolidation Loan program, call 1 (800) 557-7392 or access the Direct Loan website at www.ed.gov/DirectLoan/consolid2.html.

Private lenders that participate in the government-guaranteed student loan program may also offer the lower rate, but are not required to do so. If you borrowed from the Federal Family Education Loan program, you may contact your lending institution to see if they will consolidate your student loans.

 

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