By Jeff Mictabor
Student Borrowers Can Shop for Best Student Loan Consolidation Rates before July 1
In a little more than five weeks on July 1, federal student loan consolidation (http://www.nextstudent.com) rates are expected to increase as much as 2 percentage points, possibly more than two points. With rate hikes and rule changes, student borrowers should consolidate their loans before the deadline.
NextStudent, a premier education funding company based in Phoenix, offers top rates and unrivaled customer service to all student loan borrowers looking to consolidate before the rate increase takes effect.
Legislation Brings Rate Increases
The rate increases were instituted with the passing of the Deficit Reduction Act of 2005, S. 1932, which was signed into law in February by President Bush. The legislation includes various changes to rules and regulations in the federal student loan program, which was hit with $12.7 billion in cuts.
Federal student loan consolidation is a program by which all of a student? loans are put together and combined into one loan with a lower interest rate. Borrowers can extend their repayment period and save money with a new rate that is locked in for the loan? term.
On May 30, 2006 new rate information will be revealed. However, the expected increased rates are as follows:
6.7 percent rate for grace, deferments, and in-school students.
7.3 percent rate for Stafford loan on repayment of loans made since July 1998
8.1 percent rate for PLUS loans
NextStudent? Benefits
In order to avoid paying the exorbitant interest rates, students who consolidate through NextStudent not only will receive extremely low rates, but they will be assisted by their own personal education finance adviser who guides borrowers through the entire consolidation process.
NextStudent offers a 4.75 percent interest rate for in-school borrowers. A 2.75 percent interest rate is available with applied benefits, including:
A .60 percent reduction for consolidating after graduation
A .25 percent reduction for use of Auto Debit
Additional 1 percent reduction for borrowers making 36 consecutive on-time payments.
There are no surprises with the federal student loan consolidation program, as there are no prepayment penalties, no fees and no charges. Borrowers can rest easy because all their information is kept confidential and is fully secure.
Compare and Save
Skeptical borrowers can go to www.ConsolidationComparison.com, a company that provides comparison information on student loan consolidation. By plugging in their loan information, borrowers can view the consolidation offerings from a number of lenders, including APR, monthly payment, loan cost, and the number of payments due after consolidation.
As one of the top 20 consolidation lenders for 2005, NextStudent? rates cannot be beat. Setting the company apart even more is its dedication to providing first-class customer service, along with exceptional benefits and incentives.
With July 1 just about five weeks away, students should stay on track to keep their student loan (http://www.nextstudent.com) payments as low as possible. The expected rate increase could be damaging to students who already find it difficult to pay back their student loans. With the high cost of education and various student loans, consolidation can be a means by which students help themselves now and for years to come.
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 Loans at http://www.nextstudent.com/.
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