Another important piece of advice for students is to know your lender and know the exact terms of your loan.
Not repaying your loan should not even be an option because of the lasting consequences.
"If a student fails to pay a student loan and goes into default, there's a number of negative things that happens to their credit. Judgment will be filed for 10 years, their income tax will be offset and applied to their student loans," said Carroll.
Wages can also be garnished and it could limit your employment opportunities. McNulty says she will be better able to make on-time payments for her student loans thanks to the lower interest rates.
“I’m secure in the fact that the interest isn't going to climb up and up and up as time goes on and the economy shifts," said McNulty.
The deadline to apply for loan consolidation and lock in the low interest rate is Thursday by midnight.
Rates will go up as high as 5.3 percent on Friday. Contact your lender or school for more information.