Interest rates on federal student loans to increase

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."

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.