June 22, 2006 –
The one lender rule that prohibited student borrowers from consolidating their student loans with the lender of their choice was repealed on June 15, 2006 when President Bush enacted the Emergency Supplementary Expenditure Program, HR 4939. This opened the door to the crisis. letting student borrowers consolidate their federal student loans with the lender of their choice at low interest rates ahead of the July 1, 2006 rate hike of 1.84 percentage points.
In order to take advantage of low interest rates, student borrowers are now urged to consolidate by the July 1 deadline, according to NextStudent, the premier education finance company based in Phoenix. The well-established company offers low rates and unmatched benefits and incentives to all student borrowers.
By consolidating before the deadline, student borrowers will avoid an interest rate hike which is the second largest rate increase in the history of the federal student loan program. Some of the new expected rates include: a fixed rate of 6.8% for Stafford loans disbursed as of July 1, 2006, and a fixed rate of 8.5% for PLUS loans disbursed as of 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 life of the loan. Repayment terms can be extended and thousands of people saved in the long run.
NextStudent’s offerings in terms of low rates, aggressive benefits and discounts along with top-notch customer service are unmatched in the student loan industry. The company offers an interest rate of 2.5 percent for qualified borrowers, when the benefits are applied: reduction of 0.60 percent for students who consolidate 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 with the lender of their choice. With less than two weeks of the July 1 deadline, student borrowers are encouraged to consolidate their loans for the best rate and the best incentives before the rate hike.
NextStudent, Federal Lender Code 834051, is dedicated to helping students and their families find affordable ways to pay for their college education. NextStudent offers personalized education finance advice and has a portfolio of highly competitive education finance products and services, including a free online scholarship search engine, guaranteed parent and student loans. by the federal government, private student loans, federal and private student loan consolidation programs, and education savings plans.
The NextStudent scholarship search engine, one of the nation’s oldest and largest scholarship search engines, is updated daily, available for free, completely private, and represents 2.4 million scholarships worth of $ 3.4 billion.
For more information about NextStudent and its student loan programs, please visit the company’s website at http://www.nextstudent.com/.
# # #
Share the article on social media or by email: