PHOENIX (PRWEB) June 2, 2006 –
Federal student loan interest rates on July 1, 2006 will increase 1.84 percentage points according to the auction on May 30, 2006 of 91-day Treasury Bills. This is the second largest rate increase in the history of the student loan program. With the deadline looming and less than five weeks away, there is no better time for students to consolidate their loans, according to Phoenix-based NextStudent, a premier education funding company.
New fixed rates include 6.8 percent for Stafford loans disbursed on or after July 1, 2006, and 8.5 percent for PLUS loans disbursed on or after July 1, 2006. These new changes were part of the Deficit Reduction Act of 2005, S. 1932, which President Bush on Feb. 8 signed into law.
By consolidating through NextStudent’s program prior to July 1, student borrowers can combine all their outstanding loans into one and receive a low interest rate that is locked for the term of the loan. Consolidation adds up to one easy monthly payment that can save thousands over the long term.
NextStudent features a 2.75 percent interest rate for qualified borrowers when benefits are applied, including a .60 percent reduction when borrowers consolidate after graduation; .25 percent reduction for students who use Auto Debit; and an additional 1 percent reduction after 36 consecutive on-time payments. The company also offers an interest rate of 4.75 percent, eligible for in-school borrowers.
Through NextStudent borrowers receive low rates and first-rate personal attention from one-on-one education finance advisers. Student Loan Consolidation is a free government program. Through NextStudent there are no prepayment penalties, and no hidden charges or fees. All borrower information is secure and confidential.
With less than five weeks away until the July 1, 2006 deadline, students still have some time to consolidate to help lessen their financial burden and lock in a low interest rate. The impending interest rate increase will make it more difficult for students to obtain an education, so now is the right time to consolidate and save 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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