Quincy, MA (PRWEB) October 31, 2006
As spring 2006 college graduates approach the end of their six month federal student loan grace period, they will be faced with repaying their federal student loans at a time when student loan debt has never been greater. Student loan consolidation holds out the promise for recent graduates to lower their monthly student loan payments up to 60% and reap additional interest rate savings -- but only if they act quickly, before their grace periods end.
Federal student loan consolidation is a refinancing program that combines multiple federal student loans into a single loan, locks the interest rate, and lowers the monthly payment. Graduates can consolidate their federal student loans at any time after graduation, but doing so in the first six months after graduation gives graduates an additional discount of 0.6% off their interest rate. Consolidation has grown significantly over the past 12 months due to July 1st interest rate changes and legislative changes written to permit borrowers to consolidate with any lender they choose.
Jonathan Rudy, director of loan consolidation services at http://www.studentloanconsolidator.com recommends that 2006 graduates file their consolidation application immediately. "All 2006 spring graduates who have not consolidated their loans yet need to submit an application right away. The 0.6% interest rate discount for consolidating during their grace period translates into huge savings throughout the term of repayment. In one recent example, a student was able to save an additional $49 per month, which over the life of their loan translated into an additional $17,640 in savings." (1)
Mr. Rudy also states that college graduates are faced with a staggering financial burden after graduation. "With post-grad living expenses including moving costs, rent and car payments, student loan consolidation makes great financial sense for anyone trying to build a manageable budget. Having multiple large student loan payments each month only adds to the growing pile of bills -- consolidation can cut monthly student loan payments in half."
Christopher Penn, host of the popular Financial Aid Podcast internet radio show, commented, "Federal student loan consolidation with StudentLoanConsolidator.com is the ideal tool for managing your student loan payments. You need a couple of years after graduation to get on your feet financially, and being able to cut your loan payments in half while you're getting started can be a huge advantage. Once you're on your feet, you can make additional or larger payments with no early or extra repayment penalties."
Mr. Rudy encourages all student loan borrowers, including parents with federal PLUS loans, to file a free application for consolidation right away. Students and parents can visit http://www.StudentLoanConsolidator.com or call toll free (877) 328-1565 to learn more and apply.
StudentLoanConsolidator.com is a service of the Student Loan Network, one of the nation's fastest growing providers of student loans and related information. The Student Loan Network is based in Quincy, Massachusetts. Visit them on the web at http://www.StudentLoanNetwork.com for more information.
(1) A student with $115,000 in federal student loans compared consolidation at 6.54% and 7.14% over a 30 year term.
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