The savings, depending on the amount owed, could total thousands of dollars.

According to the most recent figures from 2000 from the American Council on Education, 65 percent of graduating seniors have some kind of student loan balance — up from 49 percent in 1993 — with students owing an average of $16,500 after their undergraduate degree.

A loan of $16,500 paid back over 10 years at the lower consolidated interest rate of 3.7 percent would cost a former student $1,480 less in interest.

Loan debt is even higher for students who go on to graduate school.

"I'll probably pay back on a graduated scale initially before I establish myself in a profession," Young said. "As your income increases your payment increases ... and I'm going to stick with a 10-year payback period. I don't want to go as long as 20."

Rather than being upset at the sizable amount of her loans, Young is grateful they were available. During the few years she was out of school between her undergraduate and graduate degrees, she paid back at the rate of about $80 a month — but her degree meant that her salary jumped.

"People are sometimes unaware just how low the interest is on educational loans," she said. "They're the lowest interest of anything and it's worth it. When I got my undergraduate degree, I doubled my salary in six months. I went from being an administrative assistant to the program coordinator."

Along with being a good financial decision for her, consolidation just makes things easier.

"You're paying one payment to one place," she said.

For the past three years, interest rates have been fairly low on federal student loans, but forecasters say this is going to end.

"What's going to happen is the repayment rate of 3.7 percent is going to go up to 5.3 percent and the in-school rate that's now 2.77 percent will go up to 4.7 percent," said Indianapolis-based Bob Murray, manager of corporate communications for USA Funds, the nation's largest loan guarantor, and the one designated as guarantor for the state of Hawai'i since 1979. "Loan consolidation is a way to avoid this increase."

There's been a significant increase in borrowing since loan limits were raised, "and what's happening now is students are borrowing the maximum allowed under the federal programs," Murray said.

In 1992, Congress raised maximum loan levels for each year of study, with a lifetime loan limit for graduate students of $138,500. According to figures from 2000 — the most recent available — master's degree recipients had a debt of about $20,000 in addition to their undergraduate debt, while doctoral degree recipients owed $24,000 and those with professional degrees, such as physicians or lawyers, owed about $67,000.

But tuition levels have risen dramatically since then and experts estimate that the average debt incurred by graduate and professional-degree students has gone much higher in the past five years.

Tracey Soma, a first-year teacher at 'Ewa Beach Elementary, who borrowed $40,000 to finance her education, is just beginning to realize the daunting task of payback. As she thinks about the costs of her coming wedding, and eventually picking up part of the mortgage from her parents when they retire, she hopes to pay back her student loans quickly.

"I'm enjoying my job now and I'm glad I did it, but now that I'm in the reality of what I have to pay back, I'm saying 'Oh, no,' " said Soma, a 26-year-old Chaminade graduate with a master's degree in education.

"It's like a mortgage. My monthly payment will be $193. Consolidation locks me in at a 2.8 percent interest rate forever. But right now I'm not paying rent or a mortgage, so I want to pay off a huge chunk of it in the next five years."

Even with enthusiastic endorsements from financial experts, colleges are advising people to weigh their options carefully.

"What we recommend is to make sure they contact and at least discuss it with the loan advisers," said Eric Nemoto, Chaminade's associate dean of enrollment management and director of financial aid.

"We don't necessarily recommend they consolidate because personal finances differ. The reason for that is when you consolidate what you're doing is starting to repay the loan. Sure, you might get a better interest rate, but if you can't make the monthly payments, what then?"

Murray, of USA Funds, also advised people considering consolidation to remember their grace period, the six months between graduation and the time they must begin paying back the loans. Some options could mean the loss of the grace period.

Ultimately, he said, "what you want to consider is a monthly payment you can afford, but one that also repays the loan as quickly as possible, otherwise you run into big interest costs."