Time is right to consolidate student loans
Director of Financial Aid
Now is a great time
to think about consolidating your federal student loans. With
a federal Direct Consolidation Loan you can combine your federal
student loans into one new loan at an all-time low interest rate.
The interest rates
on most federal student loans are variable and are adjusted annually
with a cap of 8.25 percent. On
July 1, 2002, the interest
rates on student loans dropped to 4.06 percent. This historic
low provides an opportunity for significant savings.
The Office of Financial
Aid at RIT has compiled the following list of common questions
and answers about federal consolidation loans. Please feel free
to contact the office for more information at 585-475-2186 (voice)
or 585-475-6909 (TDD) or via the web at www.rit.edu/financialaid.
Am I eligible to
consolidate my student loans?
You can consolidate
your loan as a direct consolidation loan if you are out of school
and you have at least one Direct Loan or Federal Family Education
Loan (FFEL) student loan.
Why should I consolidate?
In addition to historically
low rates, you will have one lender and one monthly payment, as
well as flexible repayment options.
How can I find out
what my consolidation loan payment will be?
Use the Direct Loans
online calculator to find out. It can be found at www.loanconsolidation.ed.gov/borrower/bconsol.shtml
How long will the
interest rates stay this low?
Interest rates are
set each year in late June. We cant predict what the interest
rate will be after July 1, 2003.
I have received
mail from all kinds of companies offering to consolidate my loans.
Which ones are good companies?
We dont know
everything about all the private companies in the loan consoli-dation
business. However, there are some advantages to consolidating
your federal student loans through the federal Direct Consolidation
So what are they?
Loans offer lower interest rates for in-school and in-grace consolidation.
Direct Consolidation Loans will never be sold to another lender
(FFEL consolidation loans can be sold). No minimum loan balance
Where do I find
is available at the Direct Consolidation Loan Information Center
or 1-800-557-7392 (voice) or 1-800-557-7395 (TDD).