NEW YORK (CNNMoney.com) -- Federal Reserve Chairman Ben Bernanke said Friday that the problems in the nation's financial markets persist and still threaten the economy.

Bernanke said that the financial woes, coupled with record oil prices and the weakening economy, had created "one of the most challenging economic and policy environments in memory."

In prepared remarks at a conference in Jackson Hole, Wyo., Bernanke also said he is encouraged by the recent oil price decline, which may signal that inflationary pressures are on the wane.

"Although we have seen improved functioning in some markets, the financial storm that reached gale force some weeks before our last meeting here in Jackson Hole has not yet subsided," Bernanke said.

"Its effects on the broader economy are becoming apparent in the form of softening economic activity and rising unemployment," he added.

Bernanke's comments seem to signal that the central bank will keep its key interest rate at 2%, rather than raise it an attempt to keep prices in check.

"The commentary tells me that rates are on hold until they see some blue skies through this financial storm," said John Silvia, chief economist for Wachovia.

The Fed cut interest rates seven times from September through April, but left them unchanged at its last two meetings.

Earlier this summer, investors and economists were widely expecting the Fed to start raising rates as early as this fall. But there is now widespread agreement that rates will remain on hold at its next two meetings in September and October and some economists are predicting rates will stay at current levels into next year.

Silvia said the Fed had little choice but to focus on upheaval in the credit markets rather than on inflation as it cut rates. And while he agreed that financial market woes are not behind us, he said the Fed faces a risk of inflation getting out of hand the longer it keeps rates on hold.

"Inflation is not out of control, but it's clearly drifting away," he said.

As your graduation date draws near or shortly after graduation, you will suddenly come to the realization that you need to start making payments on those student loans. And if you haven’t been keeping track of them, you may be floored to realize the total amount of money you owe in student loans. Even with the lower interest rate that usually accompanies a student loan, paying them back may seem like an overwhelming task.

Consider a college loan consolidation loan to give you the financial breathing room that you need right now. This will help make that loan more manageable, and easier to fit into your limited budget. But first let’s look at what can happen if you elect to not get into a college loan consolidation program.

Let’s say that for the sum total of your student loan payments, it comes out to be $700 every month for a number of years. Wow, you’ve only just started a job, you are paying rent on an apartment, you need gas in your car, you need to eat, and an extra $700 a month is just not in your budget. What to do?

You can default on the loans, which many people do. But know that this is going to leave huge negative marks on your credit report, and right now, that is the last thing you need. If you start getting dings on your credit report, it will literally take years for that to come back around and give you a good score.

So someone mentioned the possibility of bankruptcy to you? Buzz, wrong answer. Student loans cannot be discharged via bankruptcy, so if you file for bankruptcy, it may help in other areas but your student loan obligations will remain intact.

Enter a college loan consolidation program. Such a program allows you to take your student loans and give them to the consolidation company. You then make payments to them each month and they make your student loan payments for you, on time, each month.

There are two major benefits to this for you. First is that your credit score and credit rating remain intact, since your student loans are being paid back in a timely manner. Secondly, that $600 per month that was the sum total of your student loan payments is reduced by the loan consolidation company to something that is more within your reach, say $400 per month.