La Jolla, CA (PRWEB) August 30, 2007
As Labor Day approaches, most people realize summer is almost over and that school is about to start. But for those who graduated from college last spring, ScholarPoint is sending a reminder that this is also the half-way mark in their student loan repayment grace period.
The six month grace period, which begins when a borrower leaves school or drops below half-time study, gives grads time to find active employment before having to start repaying their student loans. Many new grads are unaware that if they consolidate their student loans during this time - before the end of the grace period - they are able to lock in interest rates that are 0.6 percent lower than when consolidating after the grace period. Although it might not sound like much, over the life of a consolidated loan, 0.6 percent can add up to tremendous savings.
Some borrowers are concerned that by consolidating, they will forfeit the remainder of their grace period and have to start paying the consolidation loan sooner. Sometimes that is the case, but
ScholarPoint can set up a plan where they process the consolidation at the end of the grace period. And, ScholarPoint developed an option that can extend the no-payment time an additional 12 months with a new program that allows borrowers to immediately place new federal student consolidation loans in forbearance status for reasons such as unemployment or financial hardship.
"The year after college graduation can be a trying time financially, which is why we created ScholarPoint's 12 Month No Payment Option to give borrowers the option of placing their student loans immediately into forbearance while getting settled financially," said Chris Studer, president and CEO of ScholarPoint. "Interest charges during forbearance are added to the principal balance of the loan. This increases the balance and the amount of the monthly payments and the total amount repaid over the life of the loan. However, we give borrowers a way to limit that by offering the option of making interest-only payments during the forbearance period."
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