If the current in-school consolidation loan rate of 2.77 percent is locked in, it could save ISU students millions of dollars.

At Wednesday night’s Government of the Student Body meeting, Doug Borkowski, counselor for the Financial Counseling Clinic, made a presentation on student loan interest rates.

Borkowski said the current rate is the lowest he has seen since the Eisenhower administration. The 2.77 percent rate will be assessed to students who lock in Stafford loans before June 30, Borkowski said.

Loan rate percentage is determined by the federal government and the Department of Education. The rate is the percentage of college loans paid annually.

It takes the Department of Education up to 60 days to process lock-in rate requests. Borkowski said he suggests students do this by May 1, and, ideally, by April 1.

By locking in the 2.77 percent rate, the rate will apply to all loans the student has incurred up to this point, he said. This means juniors and seniors stand to benefit the most because the rate applies to all previous Stafford loans.

If the student does not lock in this rate, the rate will stay at the current rate, which today is 4.03 percent. The savings of locking in now would be substantial for the average student, Borkowski said. The 2.77 percent rate would save the average student approximately $1,286 for a 10 year repayment plan of a $20,000 loan. The student on the 20-year repayment plan for a $20,000 loan would save approximately $2,614, he said.

“We are talking about savings in the millions,” he said.

Borkowski said for a 10-year repayment plan of a $20,000 loan, the savings campuswide would be approximately $25 million. For a 20-year repayment plan, the savings would be approximately $51 million. This would only apply if the 75 percent of ISU students who have Stafford loans all participated, he said.

Jacob Larson, off-campus senator, said this plan gives students the chance to save money in a time when there isn’t a lot to go around.

“I think it is an incredible plan,” Larson said.