Consolidate Student Loans

Congratulations graduate! With that diploma in-hand, there’s no better time to get started on the right financial foot.

You’ll have a six-month grace period with a Federal Stafford Loan. After that time, you’ll need to start making payments on your student loan(s).  The good news is – no matter where your loan originated, you may be able to save by consolidating your loan(s) with a fixed-rate Consolidation Loan at St. Paul Federal Credit Union.

Here’s how you can benefit from a Consolidation Loan:

1. Lock into a Low Fixed Rate
Most student loans have a variable interest rate that changes with the 91-day T-bill rate every July 1. However, by consolidating your student loans, you can lock into a low fixed rate for the life of the loan. This means that even when interest rates go up, you pay the same low rate that you lock into today. And, if you consolidate your loans while still in your grace period, you can save 0.6% in interest.

2. Reduce your Monthly Payments
If you have more than one student loan, you can reduce your monthly payments by consolidating your loans. Use the Federal Loan Consolidation Calculator (see TOOLBOX) to estimate your loan payments. To use the calculator you will need to know the amount and interest rate of your current loans. If your loans are with St. Paul Federal Credit Union you can find that information at www.mygreatlakes.com. If your loans are with another lender, contact them for that information or use the Loan Locator link (see TOOLBOX).

3. Choose from Three Flexible Repayment Plans

• Level Payment Plan – This option provides equal monthly payments over the maximum repayment period allowed.
• Graduated Income Sensitive Payment Plan B – This option allows for interest-only payments for the first one-third of the repayment period. You’ll pay level monthly payments for the remaining two-thirds of the repayment period.
• Graduated Income Sensitive Payment Plan C – This option allows for interest-only payments for the first quarter of the repayment period. The second quarter, you pay level monthly payments on the balance, which are calculated using the original maximum repayment period allowed. For the last half of the repayment period, you pay level monthly payments, which are recalculated using the remainder of the original maximum repayment period allowed.

Want More Information?
A variety of tools for calculating the cost of your loan and examining the potential benefits of loan consolidation are available on www.mygreatlakes.com – your resource for deferment, forbearance and forms. You’ll also find a glossary of financial aid terms, contact information and lots of other resources to help you manage your loans. There’s even help should you have trouble making payments − though we hope you'll never need it.

To find out whether a Consolidation Loan is right for you, contact the Credit Union at 651-772-8744 or check out the information on The Federal Consolidation Loan Information Guide.

To Apply for a Consolidation Loan Today
Complete and print the Consolidation Loan Application and Promissory Note. Return the completed, signed application to:

Great Lakes Higher Education Loan Services, Inc.
P.O. Box 8956
Madison, WI 53708-8956

Make Your Payments Online
At the Great Lakes site, you can view your account information and make payments online from your bank account at any time. After logging on, choose My Loans, then Internet Borrower Inquiry Service to get started.

St. Paul Federal Credit Union and Great Lakes are committed to helping you avoid the consequences of delinquency and default.