With the July 1 interest rate increase looming on the horizon and students rushing to consolidate their eligible federal student loans, Access Group, the nonprofit graduate loan specialist, reminds borrowers that they can apply for a consolidation loan online or by phone 24 hours a day, seven days a week between now and midnight Hawaiian Standard Time on June 30. Borrowers who want to consolidate their loans with Access Group can go to http://www.FederalConsolidation.Org or call 866-241-5769. Borrowers who have already applied and want to check the status of their application can call 888-250-6401.

According to Daniel R. Lau, Access Group's CEO, "As the deadline approaches, we want to give borrowers every opportunity to save money on their loans, which is consistent with Access Group's mission: to provide affordable education financing to the broadest range of eligible students."

Based on Department of Education guidelines, lenders are able to use the current lower interest rates when calculating the fixed interest rate for a Federal Consolidation Loan, provided the borrower's application is received by the lender before July 1, 2006. At Access Group, this commitment to ensure that borrowers receive the lowest possible rate is called the "Rate Lock Promise."

And with the recent repeal of the Single Holder Rule, borrowers have the freedom to consolidate with any lender they choose. Access Group reminds student borrowers who want to consolidate now, but who will still be in school on or after July 1, 2006, that they must complete two distinct steps by June 30, 2006, in order to consolidate their eligible federal loans:

* Contact each of their current loan holders/servicers and request that

the federal student loans they want to consolidate be placed into

early repayment; and

* Submit a Federal Consolidation Loan application to the lender with

whom they want to consolidate.

"We're concerned that in-school borrowers may not be aware that both steps must be completed in order to obtain the current low interest rate," says Jeffrey E. Hanson, Access Group's director of borrower education. "If they fail to complete both steps by June 30, 2006, they'll have to wait until they leave school to consolidate due to recent changes in federal law. And by then, interest rates could be even higher than they will be starting July 1, 2006," Hanson continues.

"Borrowers also should understand that lenders are not required to honor a request to put loans into early repayment, and some lenders will only do so reluctantly. So borrowers should contact their loan holder(s)/servicer(s) immediately to avoid delays that could jeopardize their ability to take advantage of the current low interest rates," says Hanson.

About Access Group

Access Group, Inc. is a nonprofit organization that has specialized in providing graduate and professional student loans for 21 years. Its products include federally guaranteed (FFELP) loans and private loans for students financing their law, business, medical, dental, health and other graduate degrees. Access Group also creates custom loan options and university-wide programs for schools to meet the unique needs of their students. The company offers flexible repayment options for all loans, as well as the Federal Consolidation Loan program. Access Group also provides borrower education materials and need-analysis services for students and financial aid administrators. For more information about Access Group products and services, visit http://www.AccessGroup.Org. For more information about federal loan consolidation in particular, visit the special Web site created by Access Group at http://www.FederalConsolidation.Org.

Source: prnewswire