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Student loan reconsolidation is a prime example of how graduates can ease their financial burden after college. Many college graduates and even students still attending college take advantage of student loan consolidation, which bundles together all of a student’s loans into one easy payment at one set interest rate. With reconsolidation students can receive additional financial and program benefits.
There are those current and former students who are unschooled about student loan reconsolidation, according to NextStudent, a premier education funding company based in Phoenix. The company offers a legitimate and valuable reconsolidation program that can further help student borrowers with their monthly payments.
Student Loan Reconsolidation Now Available
Until recently the option of student loan reconsolidation was not available to individuals who previously consolidated their federal loans. Due to legislation recently passed by the Department of Education, reconsolidation not only is available but offers a variety of benefits, including the possibility of saving thousands for individual borrowers.
Major cuts and changes to the federal student loan program are looming on the horizon and expected to take effect on July 1, including changes on interest rates and effective dates. With the passing in February of the Deficit Reduction Act of 2005, S. 1932, rules and regulations regarding student loan reconsolidation could easily turn around the entire program, making it much more difficult for graduates to participate.
NextStudent’s Reconsolidation Program
Student loan reconsolidation allows borrowers to retain the effective interest rate on their original consolidation, according to NextStudent. Through reconsolidation borrowers also reap the benefits of current interest rate discounts from lenders, discounts that originally were not offered at the initial point of consolidation.
NextStudent provides student loan reconsolidation for borrowers with a balance of at least $10,500 and at least 2 outstanding loans. Of these loans one loan must be an unconsolidated loan or from another lender. The federal regulation currently doesn’t allow lenders to reconsolidate a single loan. Incentives to the program include re-extension of the monthly term, in effect lowering the monthly payment, depending on a borrower’s balance; renewal of Title IV benefits, i.e. forbearance and deferments; and availability when there is one lender or multiple lenders.
Discount Packages Offer Benefits
Reconsolidation discount packages through NextStudent offer individuals benefits such as:
* A 1 percent locked rate reduction after 36 consecutive on-time payments
* NextStudent is one of the only lenders that locks in borrower benefits
* A rate reduction of 0.25 percent for setting up automatic withdrawal
Because of the many positive incentives available with student loan reconsolidation, borrowers benefit from a program that helps fit in with a variety of lifestyles and payments. The July 1 deadline for changes to the student loan program, including reconsolidation, is mere months away. It is important to take advantage of student loan reconsolidation now, as availability soon might be a thing of the past.
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 and Student Loan Reconsolidation.
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