federal student loan consolidation

Bank sees rush to lock in low rates

The Bank of North Dakota will process more than 7,000 applications for federal student loan consolidations after being inundated last week with requests to lock in an interest rate.A mad rush of applications came in June because interest rates increased on July 1.Julie Kubisiak, senior vice president and director of student loan services, said the bank has finished processing about 4,200 applications and has about 3,000 to go. Those applications started coming in steadily at the the end of May through June.The bank received about 11,145 phone calls regarding student loans in June, which is more than double the normal amount of between 4,000 and 5,000 per month.Kubisiak said students were able to lock in an interest rate of as low as 4.71 percent.Federal loan consolidations are now expected to slow because now the rate people can lock into will be 6.8 percent.

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Students seek to lock in interest rate for loans

BISMARCK, N.D. - The Bank of North Dakota has received thousands of applications for federal student loan consolidations from students seeking to lock in an interest rate.

Julie Kubisiak, the bank's senior vice president and director of student loan services, said the bank has finished processing about 4,200 applications and has about 3,000 left. The applications have come in from the end of May through June, she said. Interest rates went up July 1.

The bank reported about 11,145 phone calls about student loans in June, more than double the normal amount.

Kubisiak said students were able to lock in an interest rate of as low as 4.71 percent. The rate has since gone up to 6.8 percent.

The federal government adjusts interest rates on its student loans each July 1, based on a formula tied to the yield on short-term Treasury bills.

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