PHOENIX, AZ (PRWEB) May 19, 2006
Student Loan Consolidation is the answer for student loan borrowers who want to avoid the expected interest rate hike on July 1, according to Phoenix-based NextStudent, a premier education funding company. Federal student loan rates could jump as much as 2 percentage points.
July 1 is just about six weeks away, but students still have some time to lock in a lower interest rate that could save thousands over the long term.
Interest rates on federal student loans change each year on July 1 in accordance with the 91-day Treasury bill that affects Stafford loans and the 1-year Treasury bill affecting PLUS loans.
On May 30 exact information on rates will be available. However, anticipated new increased rates include an 8.1 percent PLUS loan rate, 7.3 percent Stafford loan rate on repayment on loans made since July 1998, and a 6.7 percent rate for in-school, grace and deferments.
Students can save as much as 60 percent when they consolidate through NextStudent. The company’s offerings include a 4.75 percent rate for borrowers currently in school. In addition, a 2.75 percent rate is available to eligible borrowers, with benefits applied: .25 percent reduction with use of Auto Debit; .60 percent savings when students consolidate after graduation; and a 1 percent additional reduction for students who make 36 consecutive on-time payments.
Consolidation bundles together all of a student’s loans into one easy payment, so students don’t have to worry about multiple monthly loan payments. The lower rate is locked for the life of the loan’s term. Additionally, students can extend their repayment period.
The Deficit Reduction Act of 2005, S. 1932, which passed Feb. 8, brought with it the changes to the federal student loan program and is poised to change the rates, rules and regulations that will negatively impact students’ lives.
The cost of college is increasing every day, making it more difficult for students to achieve their college dreams. The July 1 deadline is nearing, but there still is time for students to take action now with consolidation and lock in a lower interest rate that will save them money.
NextStudent, federal lender code 834051, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education finance products and services including a free online scholarship search engine, federally guaranteed parent and student loans, private student loans, both federal and private student loan consolidation programs, and college savings plans.
The NextStudent Scholarship Search Engine, one of the nation’s oldest and largest scholarship search engines, is updated daily, available free of charge, completely private – and represents 2.4 million scholarships worth $3.4 billion.
For more information about NextStudent and its student loan programs, please visit the company’s Web site at http://www.nextstudent.com/.
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