Student Loans Consolidation
Attention Stafford Loan Borrowers: Recent revisions to federal regulations allow you to consolidate your loans before you leave school if you are willing to place your loans in repayment status. Placing your loans in repayment status means that you would forfeit your six month grace period. However, if you consolidate now, you will be able to lock in an interest rate based on current low interest rates. Interest rates will go up significantly on 7/1/05, and locking in the current rate could result in a significant savings in interest charges over the life of the loan. Below is a comparison of current rates and rates that will go into effect on July 1, 2005.| Loan Type | Interest Rate 7/1/04-6/30/05 |
Interest Rate 7/1/05-6/30/06 |
| Stafford, in school, in grace or deferment | 2.77 |
4.70 |
| Stafford, in repayment or forbearance |
3.37 | 5.30 |
| PLUS Loans, all | 4.17 | 6.10 |
To consolidate while you are still enrolled, you should:
- Request in writing that the loan servicer place your loans into repayment status.
- Request that all loans be deferred.
- Request that all loans be consolidated.
In order for you to qualify for the lower interest rates, the lender must have your signed consolidation application by June 30, 2005.
Most UM-St. Louis Stafford Loan borrowers have loans serviced by MOHELA. Those who borrowed at UM-St. Louis prior to Fall 2003 may also have Direct Stafford Loans. If you've received loans at other schools you can contact the financial aid offices of those schools to get information on the holder of those loans. For more information about consolidating, you can contact MOHELA at (800) 666-4352 or Direct Loan Servicing Center at (800) 557-7392.