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URI Alumni Association offers federal loan consolidation program at rock bottom rates
KINGSTON, R.I. -- December 9, 2003 -- If youre a University of Rhode Island graduate and have at least $7,500 in federal student loan debt, you could qualify for a loan consolidation account with an interest rate as low as 1.625 percent.
To offer the program, the URI Alumni Association teamed up with Student Trust Inc. to offer alumni a chance to combine their federal loans so they can make one monthly payment and potentially reduce their monthly loan payments by 50 percent.
"This is not a new concept," said Alumni Association Executive Director Michele Nota, "but the rates became so attractive that we felt we could market the program. This is another way we are trying to improve our services to alumni. This is an excellent opportunity to provide our alumni, especially those who left the University over the past several years, a service that can really help them make ends meet. For alumni who are making large monthly student loan payments, this may be the best opportunity they will ever have to reduce their payments and the total cost of their student loans."
Heres how the program works:
o Consolidate loans to lock in a historically low fixed rate.
o Take .25 percent off the rate immediately when you make your monthly payments electronically.
o Make the first 36 consecutive consolidation loan payments on time to reduce your interest rate by an additional 1 percent.
The program also extends the term of student loans up to 30 years, depending on the balance. The standard term is 10 years.
Plus, the program shaves another .6 percent for new graduates by applying now. New grads wont have to make payments until after the grace period expires, generally about six months after graduation.
"Our graduates should also know that there are no fees for consolidation, no credit checks and no prepayment penalties," Nota said.
To make sure that students set to graduate in the spring are aware of the program, the Alumni Association, through its Student Alumni Association is sending out a 100-days-to-graduation notice alerting them to the service.
Student Trust, which is headquartered in Rockville, Md., has been a leading loan originator and service since 1972, and it now has 2,000 employees. It manages $25.3 billion in education loan assets and has generated almost $6 billion in loan consolidation volume.
For details and/or to apply, go to www.AlumniConsolidation.com/URI or call 1-800-440-0634.