La Jolla, CA (PRWEB) August 24, 2007
Before starting graduate school, ScholarPoint advises recent graduates to consolidate their loans before they enroll. Recent legislation to reduce lender subsidies means many of the borrower discounts lenders have provided will go away, perhaps as soon as this September. This means most students will lose out big time if they consolidate later. Rates have been steadily rising, too. So loan consolidation locks in a low rate and then allows a student to defer payments if they are in grad school. In a few years, after they complete their degrees they can reconsolidate if they have additional loans, and only if the federal program offers a better deal than they can get now.
Choosing the right lender now for the right borrower discounts is the most important decision. For example, student lender ScholarPoint offers two popular programs. One offers an industry-leading permanent rate reduction of 1% after just 24 on-time payments, which can save thousands of dollars over the life of the loan. The other choice is a Cash Back rebate up to 3.3% of the total loan amount.
"The Cash Back rebate is especially popular among graduate teachers and other public service professionals. Many of these borrowers will be eligible to have a portion or all of their loans forgiven by the government anyway," says Chris Studer, CEO of ScholarPoint. "Although recent legislation is designed to help students long-term, those who've graduated now should consolidate before these borrower benefits are curtailed or eliminated altogether."
In addition, both ScholarPoint programs offer another .5% instant rate reduction with auto-debit from a checking account, compared to only .25% offered by most other lenders.
There are other benefits to consolidating undergraduate student loans before starting graduate school. Following graduation, every student has the right to a six month grace period before they must begin repaying their loans. Refinancing student loans during the post-graduation grace period is the best way to reduce the total amount repaid. During this grace period, the rates to refinance student loans may be .60% lower, if the loan was made before July 1, 2006, than they are once the loan enters into repayment status. When you refinance student loans during the grace period, you will lock in these lower rates for the entire repayment period for these loans.
ScholarPoint Financial, Inc. is a national online consumer lending company specializing in student loans and offering a full range of innovative education finance solutions. Loan options for students and their families include PLUS, Stafford, Consolidation and Private loans. ScholarPoint combines industry-leading borrower benefits, best-in-class service and innovative technology. Unlike many other traditional loan sites, ScholarPoint's technology platform was designed exclusively for its website, integrating the entire process for an online experience that is simple, instant, and complete. http://www.ScholarPoint.com