|
|
|||||||
| Home Page |
|||||||
Take Advantage of Student Loan Consolidation Before Rates Rise 1.84 Percentage Points on July 1Take Advantage of Student Loan Consolidation Before Rates Rise 1.84 Percentage Points on July 1 The interest rate increase on federal student loans (http://www.nextstudent.com/privateloans/privateloans.asp) will increase 1.84 percentage points on July 1 and is based on the announcement of the May 30, 2006 auction of 91-Day Treasury Bills. In less than five weeks students will be subjected to the second largest rate increase in the history of the federal student loan program. With the upcoming rate hike, student borrowers are in the perfect position to consolidate their loans and lock in a low rate before the deadline, according to NextStudent, a premier education funding company based in Phoenix. The interest rate increase and other changes to rules in the federal student loan program are due to the passing this past February of the Deficit Reduction Act of 2005, S. 1932, which was signed into law by President Bush. Along with major cuts to various federal programs, the legislation cut $12.7 billion to the federal student loan program. Stafford and PLUS Loans Affected Student borrowers who are not convinced that consolidation is a smart choice should note the upcoming changes on Stafford and PLUS loans. New rates for Stafford loans disbursed on or after July 1, 2006 will be set at 6.8 percent. For PLUS loans disbursed on or after July 1, 2006 the fixed rate will be 8.5 percent. However, if student borrowers take advantage of consolidation before July 1, they can lock in a low interest rate that stays fixed for the loan's term. Borrowers also can extend their payment term. July 1 is less than five weeks away so there is not that much time for students to make their financial situations easier. Consolidation bundles together all of a student's loans to make one simple monthly payment. Instead of numerous student loan bills, students more easily can manage one monthly payment with one low interest rate. NextStudent's Consolidation Rates Consolidation offerings through NextStudent include a 4.75 percent rate for qualified in-school borrowers. Also available is a 2.75 percent interest rate for qualified borrowers when benefits are applied. Benefits include: • .60 percent reduction for students who consolidate after graduation Consolidation is a free government program. Through NextStudent there are no fees, charges or prepayment penalties when borrowers consolidate, and all borrower information is fully secure and confidential. Borrowers receive low rates and one-on-one service with a personally assigned education finance adviser. Heavy Burden for Students The rising cost of a college education coupled with the interest rate increase will make it more problematic for those students who want to receive a degree. Those hardest hit will be from low-income and middle-income families who oftentimes are denied or deny themselves a college education due to the high cost. Consolidation can help students who have college loans (http://www.nextstudent.com/privateloans/privateloans.asp) with high interest rates and numerous monthly student loan bills. One monthly payment with a lower interest rate and extended payment term can be the first step to helping students ease their financial burdens. However, it is important to take the first step by consolidating before the July 1 deadline, which is just weeks away. NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding as easy as possible. Learn more about Student Loan Consolidation (http://www.nextstudent.com) at http://www.nextstudent.com/.
Rate this Article:
Current: 0 / 5 stars - 0 vote(s).
Article Tags: Student Loan Consolidation, Student Loans, Student Loan About the Author:
Jeff Mictabor is an enthusiast on the topic of student loan issues in the news. He has been writing for the past 10 years for a variety of education publications. He now offers his writing services on a freelance basis.
Related ArticlesAs July 1 Deadline Nears, NextStudent Offers In-School Consolidation as low as 2.5 Percent Student loan consolidation: look this gift horse in the mouth. Students Should Consolidate Student Loans Before July 1 Following Repeal of Single-Lender Rule NextStudent's Graduate Plus Student Loans Help Students Attain an Even Higher Education Student Loan Borrowers Save More With Nextstudent's Consolidation Program NextStudent's Graduate PLUS Loans Available to Fall Graduate Students Nextstudent Efas Trained to Deliver Premier Service in Student Loan Industry Reverse the Raid on Student Aid Act Introduced to Cut Interest Rates Got a Question? Ask.Ask the community a question about this article:Frequently Asked Questions Defaulting on student loans? How to get student funding when student loan said no Business Loans from real people I'm looking for a very short term loan in the amt ... Flight School Might Be Going Out Of Business What Happens To My Sallie Mae Loaned Money? Latest College and University ArticlesE-tutoring – the Perfect Sit at Home Learning Solution Places Where Golf Colleges Can Thrive Textbook Buy Back: One Cool Way to Make It Better How To Take A Class Without Making A College Textbook Purchase: 3 Simple Techniques Why Earn a Degree in Australia? Benefits of a College Education Top Education in Less Time : the Benefit of Earning a Bachelor Degree in Australia or New Zealand Selecting a New Zealand Degree Program More from Jeff MictaborStudent Loan Borrowers Save More With Nextstudent's Consolidation Program Plus Loans From Nextstudent Available for Fall Semester and During the Year Plus Loans From Nextstudent Allow Parents to Help Pay for College Private Student Loans from NextStudent Can Still be Dispersed Before Fall Semester Begins Private Student Loans Help Students Fund Their Higher Education NextStudent's Graduate PLUS Loans Available to Fall Graduate Students NextStudent's Graduate Plus Student Loans Help Students Attain an Even Higher Education Students Should Consolidate Student Loans Before July 1 Following Repeal of Single-Lender Rule |
|||||||
|
Article Categories
|
|||||||
|
|
|||||||