Posted: 11/04/98

Student Loan Repayment Temporarily Cheaper



Individuals paying off student loans stand to reap the greatest benefit from temporary legislation which will lower the interest rates on student loan consolidation.

Dr. Stephen Brown, Dean of Student Affairs at Texas A&M International University, said that, in addition to saving borrowers money, the change also facilitates repayment by allowing borrowers to make a single payment each month.

"Until Jan. 30, 1999, the U.S. Department of Education will be consolidating student loans at a reduced interest rate of 7.46 percent. This rate is a full percentage point lower than recent loan rates, and even farther below the rates for older loans. After Jan. 30, student loans will be consolidated at a higher rate," Dr. Brown explained.

"This offer is currently available to borrowers who are currently repaying loans. Obviously, the University's alumni and graduates of other institutions can benefit greatly from this unusual opportunity. We would encourage these individuals to visit our offices in Canseco Hall 302 or call the Financial Aid Office at 326.2225," he said.

He noted that the temporary legislation has also lowered the interest rate on new student loans to current students who are paying back their loans to 6.86 percent. These rates are good until June 30, 1999.

"The new lowered rate on student loans should also serve as an encouragement to students considering starting or continuing their higher education," he said.

Brown said the A&M International Financial Aid office can provide a copy of a fact sheet for individuals seeking additional information on loan consolidation. Information on the lowered interest rates on new student loans is also available.

A&M International is currently conducting early registration for the Spring Semester 1998 through Nov. 13.

University office hours are from 8 a.m. - 5 p.m. Monday-Friday.

Journalists who need additional information or help with media requests and interviews should contact the Office of Public Affairs and Information Services at pais@tamiu.edu