NEWS FROM CALIFORNIA STATE UNIVERSITY, BAKERSFIELD
FOR IMMEDIATE RELEASE
16 JUNE 2000
CONTACT: Pat Wright, 661/664-2456; firstname.lastname@example.org
College borrowers should apply now
Students who have more than one college loan could save money by consolidating their loans before July 1 to avoid higher interest rate hikes expected after July 1. The financial aid office at California State University, Bakersfield is encouraging students to refinance. Additional benefits of consolidation are a single lender, with single loan payments based on income, and an extended period to repay the loan.
According to financial aid officer Leonard Gonzales, student loan interest rates are adjusted annually on July 1 according to a formula based on the interest rates of the 91-day Treasury bills. Since last year, the Federal Reserve has increased the short term lending rate by nearly 1.25 percent. This means that borrowers who consolidate after July 1 could see their Stafford loan rates rise from current rates to a rate approaching the 8.25 percent cap. Rates on PLUS loans for parents with dependent undergraduates could rise to the 9 percent cap.
Applications for consolidation must be postmarked before July 1, 2000. Applications can be filed electronically at www.loanconsolidation.ed.gov, or by telephone, 1-800-557-7392.
For more information and to apply, call the Financial Aid Office, 661/664-3016.