New York ? Jason Manning received his master’s in education degree last month, but he’s already gotten a welcome reprieve in repaying his $35,000 student loan debt — his monthly payments are being cut in half, to $150 from $300.

Like thousands of other students across the country, Manning is consolidating his student loans, taking advantage of record low interest rates that went into effect July 1. The consolidation allows borrowers to lower their payments and make adjustments to the terms of their loans.

“Right now, with different bills, moving and rent payments, I just thought it was important to have the lowest payment possible coming out of college,” said Manning, who graduated June 15 from Union College in Schenectady, N.Y.

Students and graduates, who typically have one loan for each year of schooling, can consolidate only once under federal law, but doing so allows them to write just one check and lower their monthly payments by several hundred dollars in some cases.

Loans can be consolidated at any time during the year. The application process can be started over the phone by calling (800) 448-3533, or online at www.salliemae.com.

As of July 1, the rates for what are known as Stafford Loans dropped to 3.42 percent for borrowers who are already repaying loans, and 2.82 percent for those in school, in a grace period or a period of deferment. The rate for Parent Loans for Undergraduate Students (PLUS) fell to 4.22 percent.

Stafford Loans are guaranteed student loans available to all students regardless of financial status. PLUS Loans are made to parents whose dependent children are students.

The consolidated loan will be issued in the same principal amount as the original loan, but the interest rate changes and is based on the average rate of all the loans being consolidated, said Patricia Scherschel, consolidation product executive for Sallie Mae, the nation’s largest provider of student loans.

Graduates who want to consolidate should keep in mind a few considerations, Scherschel said:

• If graduates have trouble making monthly payments or are at risk of late payments on credit payments and loans, they should consider consolidation to extend their payback periods and lower their monthly payments.
• Those who have high debt but who can make their monthly loan payments might want to consider locking in the low rates and freeing more cash to pay the loan back faster.
• A borrower who just left school and is still in a grace period might want to consider consolidating to lock in the low rates during this period.