Here's my husband's suggestion: use a long wire brush (like perhaps one you could use to clean a shotgun) or a drill with a wire brush attachment to it to wear the rust down to bare metal. Then treat the bike with a rust inhibitor. He didn't disagree with the Evapo-rust solution, but you would have to plug every hole in the bike in order to treat it. I did read a thread on MTBR.com where someone did that with good results.
Beyond that, you might see if anyonein your area does bike restoration.
Rust in the seat tube isn't as alarming as it would be in the BB shell, but I'd still be a bit worried about if it were me in that spot of the seat tube.
Live with intention. Walk to the edge. Listen hard. Practice wellness. Play with abandon. Laugh. Choose with no regret. Continue to learn. Appreciate your friends. Do what you love. Live as if this is all there is.
--Mary Anne Radmacher