INTEREST RATES Ryan encourages YSU students to act quickly on loan changes

Would-be consolidators need to get a notice on record by Saturday.
By HAROLD GWIN
VINDICATOR EDUCATION WRITER
YOUNGSTOWN -- College students and recent graduates with outstanding student loans have until Saturday to consolidate those debts before interest rates rise.
U.S. Rep. Tim Ryan of Niles, D-17th, was at Youngstown State University on Monday urging that those eligible to refinance their debt do so immediately.
Loans have been at variable rates that are reset every July, but changes in the federal program will convert the loans to fixed rates as of Saturday, he said, noting that outstanding federal student loans are now at 5.3 percent but will go to 6.8 percent. Parent loans for students are at 6.1 percent but will go to 8.5 percent, he said.
Students can lock in that 5.3 percent rate, and parents can lock in their 6.1 percent rate permanently by consolidating various years' loans now, he said.
The consolidation applies only to current loans from the previous school years, not any new loans taken out for the next school year, said Elaine Ruse, director of the office of financial aid and scholarships at YSU,
Chad Miller, YSU student government president, said students and parents should visit the Web site www.mygreatlakes.com and look at the borrowers section for more information.
Many affected
Ruse said about 85 percent of YSU's nearly 13,000 students get some form of financial aid.
The university processed $57 million in student loan funds in the past year, she said, adding that students can save significant amounts of money by consolidating their loans now.
Students need to sign and submit online versions of a loan consolidation promissory note and application by Saturday, Ruse said, adding that the details of the consolidation can be worked out later.
The important thing is to get that notice of consolidation on record now, she said.
gwin@vindy.com