MADISON, Wis. -- July 1 is the deadline for a decision that could mean big money for those with student loans.

Each year, thousands of students decide whether to consolidate their student loans, but this year, thousands of dollars ride on making that decision by the Friday deadline.

"I had no idea that I had to consolidate until a few weeks ago when I got all these notices in the mail," said recent UW graduate Katie Doherty. She has about $30,000 in loans, so saving money in repayment is important.

"I'm going to save thousands of dollars, probably over $10,000 in the long run, which is amazing," said Doherty.

Doherty consolidated to lock in her interest rate, before it goes up on July 1.

For recent grads the interest rate is 4.75 percent. On July 1, that increases to 6.625 percent, which is a 39 percent rate hike. For those already paying on loans who haven't consolidated, the rate jumps from 5.29 percent to 7.14 percent -- a 35 percent rate jump.

UW's Financial Aid Department has been answering hundreds of phone calls asking for help, WISC-TV reported.

"We tell them consolidation might be good for them and it might not," said Financial Aid Director Susan Fischer. "Every student's situation is so unique."

For the average student with $20,000 in debt, consolidating by July 1 means paying back $31,019 over 20 years. Doing it after July 1 adds up to $36,142, meaning a total savings of around $5,000.

Doherty got in just under the wire for her big savings.

"It's a really big relief, I was really nervous," said Doherty. "Now I have just one payment I'll make every month instead of several different ones, and then saving a ton of money. It feels really good to be done with it."

Students still in school can also consolidate, but that option won't be available after July 1 due to a new federal law.

Related Links::

National Student Loan Data System
UW-Madison Bursar's Office
Federal Student Aid
Federal Direct Consolidation Loans Information Center
MyGreatLakes.com