Consolidate debt help

Numerous media reports in past months have revealed that college students are graduating under a mountain of debt--even as interest rates drop to historic lows. Now, a study by the Collegiate Funding Services (www.cfsloans.com) shows that more than half of the graduating class of 2003 is unaware of the Federal Consolidation Loan Program, which could help cut student loan payments by up to 58 percent.

But the problem isn't a new one. According to the CFS study, 53 percent of graduating seniors were unaware of the FCLP, approximately the same figure reported in a similar study conducted by the organization in 2002.

The FCLP was designed to make loan payments more manageable for students, "yet most borrowers are unaware of its existence," said J. Barry Morrow chief executive officer of CFS. "Given the challenging job market for this year's graduates, the new historically low interest rates should encourage more student loan borrowers to act quickly to consolidate." loan consolidation is an attractive option, Morrow says, because there are no added fees, no pre-payment penalties, and no credit checks. Furthermore, the student loan interest may be tax-deductible.

Interest rates, tied to the auction of 91-day Treasury bills, felt to an unprecedented low in May--2.82 percent for in-school borrowers and 3.42 percent for those currently making payments.