By Summer Allen

    Rumors floating around K-State over the summer suggested that graduate students might not be able to consolidate their loans.
    The rumors stemmed from the recessive American economy, which is causing some private lenders to stop graduate students from loan consolidation, said Larry Moeder, director of student financial assistance at K-State.
    “Generally, private lenders have the best consolidation options and offer reasonable interest rates,” Moeder said. “Due to the suffering economy, lenders could no longer offer the best rates.”
    Moeder said the rumor that graduate students could no longer consolidate loans is “completely false.”
    “As long as I can remember, graduate students have been allowed to consolidate their loans,” Moeder said. “Students should check lenders’ Web sites to find out more information about the consolidation process. Many lenders provide calculators to provide the best option of payment.”
    If the rumors had been true, graduate students would suffer a great deal financially, because the cost of tuition for graduate school is more expensive than undergraduate tuition. Borrowing loans becomes almost a necessity for many students.
    To offset their expenses, graduate students have had the option to consolidate their student loans.
    Carlie Spiker, second-year graduate student in animal sciences, was worried that the rumor might have been true.
    “Most of the time, as graduate students, we don’t gain the financial benefits of having a master’s degree until some years later,” Spiker said. “We graduate embedded in debt, and being able to consolidate was an option of relief.”
    Students at K-State do not have to worry about finding the best rates, Moeder said.
    This year, the university switched from private to federal sectors, giving students the opportunity to consolidate through federal sectors, he explained.
    Tonya Phillips, master’s 2008 graduate in business administration, said she plans to consolidate her student loans.
    “I have not started the research process to find out exactly what I need to do in order to consolidate,” Phillips said. “I do know that there are pros and cons to consolidating.
    “The biggest pro for me is the fact that I am able to make a lump sum payment for multiple loans. It is just more convenient.”