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The road to student loan consolidation is about to take a sharp turn, as interest rates and rules are slated to change on July 1, just about five weeks away. Interest rates on federal student loan consolidation are expected to increase approximately 2 percentage points, making payments much more difficult for student loan borrowers.
All the changes and interest rate increases are the result of the passing in February of the Deficit Reduction Act of 2005, S. 1932. The legislation also included $12.7 billion in cuts to the federal student loan program.
Consolidation Saves Money over the Long Term
With all the expected changes and rate increases poised to take effect, student loan consolidation can be the answer for student borrowers who have numerous loans with varying high interest rates. Through federal student loan consolidation, borrowers can bundle together their outstanding loans into one easy monthly payment while also saving money over the long term, according to NextStudent, the Phoenix-based premier education funding company. In addition, students can extend their payment period.
Through old-fashioned comparison shopping, student loan borrowers easily will find that among the top 20 consolidation lenders, NextStudent’s student loan consolidation program offers the best rates, benefits and incentives.
Compare and Save
Student loan borrowers can comparison shop their student loans at http://www.consolidationcomparison.com/, “The smart, easy way to compare student loan consolidation options from up to 12 lenders,” according to the company’s Web site.
After students plug in their loan facts, www.ConsolidationComparison.com calculates and provides information from a variety of lenders. Information includes: principal amount, monthly payment, total cost of loan, APR and number of payments after consolidation. NextStudent’s rates, monthly payments and number of payments are the lowest of all the top 20 consolidation lenders.
NextStudent’s Great Rates, Benefits
Along with the best rates in the industry, NextStudent offers borrowers top benefits and incentives along with top-rate customer service not seen elsewhere in the industry.
With that knowledge, students can avoid the upcoming expected increased rates on July 1, which include: 8.1 percent on PLUS loans; 6.7 percent for in-school students, grace and deferments; and 7.3 percent for Stafford loan repayment for loans made since July 1998.
By consolidating before the July 1 deadline, student loan borrowers can receive NextStudent’s low rates along with personalized service. The company’s federal student loan consolidation program has no fees, no hidden charges and no prepayment penalties. Offered rates are as low as 2.5 percent with benefits applied, including .60 percent reduction for borrowers who consolidate after graduation, .25 percent reduction for students using Auto Debit, and a 1 percent rate reduction for borrowers who make 36 consecutive on-time payments. In-school borrowers can receive a 4.75 percent rate. All borrowers’ information is fully secure and confidential.
The interest rate hike coupled with the ever-increasing cost of a college education is making it much more difficult for students and their families to pay for higher education. Students from low-income and middle-income families are feeling the pinch even more. However, student loan consolidation can be a way in which student loan borrowers can ease their situations with a lower interest rate and decreased monthly costs.
As July 1 nears, student loan borrowers should make the decision to take control of their outstanding loans through consolidation. Borrowers can make their lives easier with a lower interest rate and one monthly payment, while they save money over the long run.
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.
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