June 22, 2006 –
The single lender rule which prohibited student borrowers from pooling their student loans with the lender of their choice was repealed on June 15, 2006 when President Bush signed into law the Emergency Supplementary Spending Program, HR 4939. This paved the way for student borrowers to consolidate their federal student loans with the lender of their low interest rate choice. before the increase of 1.84 percentage points on July 1, 2006.
In order to take advantage of low interest rates, student borrowers are now being asked to consolidate before the July 1 deadline, according to NextStudent, the leading Phoenix-based education finance company. The well-established company offers low rates and unparalleled benefits and incentives to all student borrowers.
By consolidating before the deadline, student borrowers will avoid an interest rate hike that is the second largest rate increase in the history of the federal student loan program. Some of the new rates expected include: a fixed rate of 6.8 for Stafford loans disbursed on or after July 1, 2006, and a fixed rate of 8.5% for PLUS loans disbursed on or after July 1, 2006.
With consolidation, a borrower’s various loans are combined into one loan and one monthly payment at a low interest rate that is locked in for the term of the loan. Repayment terms can be extended and save thousands in the long run.
NextStudent’s offerings of low rates, aggressive benefits and discounts, and top-notch customer service are unmatched in the student loan industry. The company offers a 2.5% interest rate for qualified borrowers, when the benefits are applied: 0.60% reduction for students consolidating after graduation; 0.25% reduction with the use of automatic debit; and an additional 1% for making 36 consecutive payments on time.
Student borrowers can now consolidate their loans through the lender of their choice. With less than two weeks to go until the July 1 deadline, student borrowers are urged to consolidate their loans to get the best rate and incentives before rates rise.
NextStudent, federal lender code 834051, is dedicated to helping students and their families find affordable ways to pay for their college education. NextStudent offers one-on-one education finance advice and has a highly competitive portfolio of education finance products and services, including a free online scholarship search engine, parent and student loans federally guaranteed, private student loans, both federal and private. student loan consolidation education savings programs and plans.
The NextStudent scholarship search engine, one of the oldest and largest scholarship search engines in the country, is updated daily, available for free, 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 website at http://www.nextstudent.com/.
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