Frank Claus  

As associate vice president for finance at the University of Pennsylvania, overseeing Student Financial Services, Mr. Claus and his staff have been helping Penn students fund their Ivy League education since 1988.

"Any student who hasn't consolidated school loans should consider doing so now," Mr. Claus says.  "This is great for students.  During the life of the loan, they can save about 20 percent on interest.

"With historically low interest rates during the past few years, student loan consolidation has been a common practice for graduates, but in light of the recent Federal Reserve hikes, the student loan rate after July 1 will increase significantly," Mr. Claus says.

"We've been advising our graduates to consolidate for a long time, but we just learned of a loophole in the law that allows current students to consolidate their federally guaranteed loans at these historically low interest rates."  

"If they choose to do so, they will give up the traditional six-month grace period after graduation."

" Students who plan to enter careers with a chance of loan forgiveness, however, such as the Peace Corps or certain teaching assignments, shouldn't consolidate," he says.