Interest rates on federal student loans to increase

GRAND RAPIDS, Mich. -- Interest rates on federal loans will increase July 1, so students are encouraged to consolidate their loans and lock in at the current low fixed rate. The interest rate for federal loans is currently a variable rate of 4.7 percent. On July 1, the rate will become fixed at 6.8 percent.

Ken Fridsma, director of Financial Aid at Grand Valley State University, said students have the opportunity between now and July 1 to consolidate their loans and lock in at 4.7 percent.

"If students don't consolidate, their loans will automatically be switched to a fixed 6.8 percent," said Fridsma, "but students who consolidate can lock in at 4.7 percent as a fixed rate for the life of the loan. A student could save up to $2,000 in interest, depending on the amount they borrowed."

** Congressman Vern Ehlers, R-Grand Rapids, will join Ken Fridsma Friday, April 21, in addressing students at noon in room 215 A of the Eberhard Center, 301 W. Fulton in Grand Rapids. The event is open to media.**

Students can get more information about how to consolidate their loans by calling 800-557-7392, or by visiting the Web site, www.loanconsolidation.ed.gov.

For more information, contact Grand Valley News and Information Services at (616) 331-2221.