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University of Hawai'i |
(808) 956-8856 Telephone |
For Immediate Release: The following release comes from the National Association of State Universities and Land-Grant Colleges. The University of Hawai'i is a NASULGC member institution. |
October 23, 1998 |
Contact: Roz Hiebert, NASULGC 202-478-6073 |
College students and graduates have just four months to save money on their student loans, says land-grant higher education association president
Washington D.C., October 16-"About 50% of all college graduates relied on student loans to help get them through college-but most of them don't know that a law just passed by Congress gives them a chance to cut back on the amount of money they owe," says C. Peter Magrath, president of the National Association of State Universities and Land-Grant Colleges (NASULGC). "NASULGC wants to help spread the word to students and graduates to take advantage of today's lower interest rates by essentially refinancing their student loans. But they need to know this in a hurry because their window of opportunity is very short. The deadline for applying is January 31, 1999." Just passed by Congress, the Higher Education Amendments (HEA) of 1998, has been signed into law by President Clinton. It allows student loan holders to apply for a consolidation loan from the Department of Education's direct loan program at an interest rate of 7.46 percent. This rate is significantly lower than the existing rate on most student loans. Although the interest rate on a consolidated loan would be adjusted annually, it would be based on a lower interest rate formula for the life of the loan. The Department of Education estimates that most students who consolidate their loans would save about $500 per $10,000 of debt on an average 10-year loan. For borrowers still in school, the new rate is only available to students who hold only direct loans. A student who holds a mix of different kinds of student loans would not be eligible. For graduates with loans, the following conditions apply: · At least one Department of Education Direct Loan or Federal Family Education Loan must be included in the consolidation. · There is no consolidation fee or minimum balance. · A loan holder can consolidate a single loan, an existing direct consolidated loan, or several loans. · A loan holder can choose which of his or her loans to consolidate or may choose to consolidate all loans. Loan holders can obtain more information and an application by contacting the Department of Education Direct Loan origination center at 1-800-557-7392 or on-line at http://www.ed.gov/DirectLoan. Founded in 1887, the National Association of State Universities and Land-Grant Colleges (NASULGC) is the nation's oldest higher education association. A voluntary association of public research universities, land-grant institutions, and many state university systems, NASULGC's membership includes 201 institutions, and its campuses are located in all 50 states, the District of Columbia, and U.S. territories. Its member campuses enroll more than 2.9 million students and claim upwards of 20 million alumni. NASULGC institutions award approximately a half-million degrees annually, including about one-third of all bachelor's and master's degrees, 60 percent of all U.S. doctoral degrees, and 70 percent of the nation's engineering degrees. |
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