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2:56 PM
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This is the last chance for borrowers to reconsolidate their student loans and receive benefits and incentives before the Department of Education ceases to accept applications, as reconsolidation no longer will be available after March 31.
This is the last chance for borrowers to reconsolidate their student loans and receive benefits and incentives before the Department of Education ceases to accept applications, as reconsolidation no longer will be available after March 31.
Many cuts and changes to the federal student loan program included in the Deficit Reduction Act are set to take effect on July 1. However, the Department of Education recently changed the effective date for reconsolidation to March 31 so that all its paperwork is complete by June 30. With that in mind, borrowers only have two days left to reconsolidate and get in their applications to NextStudent to reduce their monthly payments and save thousands.
The staff at NextStudent is compelled to provide the best customer service the student loan industry has to offer by going above and beyond for our customers. The entire staff is working diligently and is dedicated to doing everything possible to comply with the laws the Department of Education recently implemented requiring that reconsolidation applications are postmarked by March 31.
We are paying additional fees at no extra charge to our customers to send all reconsolidation applications by overnight mail. All our airport drops will be made this evening and tomorrow with hopes of ensuring that the overnight packages arrive at the Department of Education by March 31.
This is the absolute last chance for borrowers to take advantage of a program to help ease their monthly payments. NextStudent’s reconsolidation program is available to borrowers with a balance of $10,500 or more. Through the program borrowers are able to retain the interest rate on their original consolidation. In addition, borrower benefits include interest discounts offered from lenders that previously were not available when consolidation first was presented.
NextStudent’s reconsolidation program is available when borrowers have one or more lender. Through reconsolidation borrowers can re-extend their monthly payment term, which lowers the monthly payment, depending on a borrower’s balance.
Other incentives include a 1 percent rate reduction after 36 consecutive on-time payments and a 0.25 percent rate reduction with automatic withdrawal setup. With barely two days left, it is important for borrowers to sign up now.
About NextStudent
NextStudent, http://www.nextstudent.com/, listed at No. 15 on the Top 100 Consolidating Lenders for fiscal year 2004, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education lending products and services including an online scholarship search engine, low and no-cost federal student loans, parent loans, private loans, student loan consolidation programs, student loan reconsolidation programs and college savings plans.
The NextStudent Scholarship Search Engine, one of the nation’s oldest and largest scholarship search engines, is updated daily, available free of charge, completely private – and represents more than 2.4 million scholarships worth $3.4 billion.
For more information about NextStudent and its student loan reconsolidation program, please visit the company’s Web site.
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Posted by
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2:54 PM
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The U.S. House of Representatives on March 30 voted to extend for six years the Higher Education Act of 1965. The bill called the College Access and Opportunity Act, or H.R. 609, includes a student loan provision that would repeal the single holder rule. Other items include the reauthorization of financial aid through 2012, student loan forgiveness provided for service in areas of national need, and a requirement for lenders that consolidate to provide more information to borrowers.
Although H.R. 609 included the elimination of the single holder rule, it only is in force for those student loans received on or after July 1. Therefore, the single holder rule remains in effect for the next three months, which negatively impacts student borrowers' options.
The bill now is in the hands of the Senate. The House and Senate currently are in recess and report back to work on April 24. Therefore, a Senate vote could occur any time after April 24. The single lender rule, even with Senate approval, would not be repealed until July 1. At this time only the Senate can make changes to the reauthorization bill. However, if the Senate institutes changes that then are passed, the bill would revert back to the House.
Eliminate Single Lender Rule
Repealing the single lender rule is important for student loan borrowers. With the rule as it stands, student loans must be sent through the Department of Education, leaving students without many options.
The single lender rule prevents student borrowers from consolidating their college loans with other lenders for better benefits. Without the option of student loan consolidation borrowers could be tied for years to one lender’s unsatisfactory agreement. This could hinder borrowers from receiving benefits that are more advantageous to their needs. In addition, the single lender rule prohibits borrowers from reconsolidating in order to receive better terms.
Students Need More Choices
The elimination of the single lender rule would afford student loan borrowers many more options to help ease their financial situation. Student loan borrowers could have the choice to search for better rates and benefits, thus making it easier to pay off their bills.
Borrowers and other concerned citizens do not have to sit on the sidelines while waiting to find out the results of the Senate's vote and how it impacts their future. They easily can speak out and ask their senators to allow students the right to consolidate their loans through a lender of their choice.
Students have a long history of standing up for their rights and speaking out about injustices, so it would not be out of character for them to take a stand. Since the government is supposed to work for the people, the people need to speak up. All those concerned with repealing the single lender rule can write a message to their senators through the following link:
http://www.senate.gov/general/contact_information/
Students and concerned citizens also can call (202) 224-3121 and ask to speak with their senators.
Students and concerned citizens throughout the United States have been watching closely to see the effects of all the legislation affecting the federal student loan program. The negative effects basically began with the passing of the Deficit Reduction Act of 2005, S. 1932, which was signed into law Feb. 8 by President Bush and cuts $12.7 billion to the federal student loan program.
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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Posted by
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2:50 PM
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In an effort to cut the interest rates in half on student loans before they increase on July 1 and to provide better access to college, Sen. Richard J. Durbin, D-IL, who also serves as assistant senate Democratic leader, in conjunction with Rep. George Miller, D-CA, senior Democrat on the House Committee on Education and the Workforce, introduced April 13 the Reverse the Raid on Student Aid Act of 2006, or H.R. 5150. Interest rates would be cut for student borrowers and parent borrowers alike.
The bill comes on the heels of the March 30 passing of the College Access and Opportunity Act of 2006, or H.R. 609. Miller originally presented an amendment to H.R. 609, also called Reverse the Raid on Student Aid; however, in a vote of 220 to 200 the House voted against that amendment.
Bill to Provide Better Access to College
By setting interest rates at 3.4 percent for Stafford Loans and 4.25 percent for PLUS Loans disbursed on or after July 1, the new legislation is intended to provide college access to all those students who qualify for a higher education.
Durbin and Miller, in a telephone press conference, expressed their intention to try to push the bill through Congress before the interest rates increase.
Convincing Republicans of the Bill’s Need
In order to receive the needed support for the bill, the legislators must convince a variety of representatives, mainly Republicans, of the extreme need for the bill and the advantages it will bring to students. In effect, Republicans will have to be persuaded to spend the approximate $37 billion over five years required to slash the interest rates in half.
“The high cost of tuition should never prevent a qualified student from getting a college education, but Republican leaders in Congress apparently don’t see it that way,” Miller said in an April 13 press release distributed from his office. “Democrats want to take America in a new direction, and that includes reversing the Republican raid on student aid and making college more affordable for all students and families.”
According to the release, the Republicans in Congress were behind the recent $12.7 billion in cuts to the federal student loan program. Those cuts have put college students and their families in a no-win situation. The price of college has skyrocketed throughout the years, and the “Republican Raid on Student Aid,” according to Miller and Durbin, has not helped in any way, as it has made college less affordable for those who have difficulty paying for it in the first place.
It’s Time to Act
“Unless we act now, starting July 1st, the price of a college education will increase dramatically for students across the country,” Durbin was quoted as saying in the press release. “New interest rates on student loans could make the ticket price of a higher education unaffordable, and cost students the opportunity to get a college education.”
According to recent reports, the press release said, the price of tuition, fees and room and board at four-year public institutions from 2001 through 2006 increased by 44 percent. Additionally, the U.S. Department of Education said during the past decade that average student debt rose more than 50 percent.
As stated in Miller’s press release, Durbin said, “The concern for our global economic viability is real. Raising interest rates on today’s students shortchanges our children while threatening our country’s ability to remain competitive in the global marketplace.”
Durbin and Miller hope that students and parents will work to try to gain support for the new legislation. Those concerned easily can contact their congressional representatives and ask them to approve the bill. Representatives can be contacted in writing by going to http://www.house.gov/writerep/, or by calling (202) 224-3121.
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 NextStudents’ Student Loan Consolidaiton and College Loans programs.
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Posted by
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2:47 PM
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NextStudent Inc., through its affiliate companies, last week completed its first securitization of student loans when the NextStudent Master Trust I issued $571 million in Auction Rate Student Loan-Backed Notes in a nonregistered private offering.
Citigroup was the lead investment banker on the deal. Co-managers included JPMorgan, Deutsche Bank Securities Inc. and RBC Capital Markets.
“With the successful issuance of these securities, NextStudent has completed its transformation from a student loan and scholarship search/marketing company to a student loan finance company,” said John F. (Jack) Wallace III, Executive Vice President of Finance at Phoenix-based NextStudent. “As a first-time issuer in the U.S. capital markets we are pleased with the investors’ reception of our securities,” said Wallace.
The proceeds of the transaction were used to purchase a portfolio of federally guaranteed Consolidation, PLUS and Stafford student loans previously held through a bank warehouse facility. Additionally, approximately $150 million was pre-funded for the purchase of PLUS, Stafford and Consolidation student loans during the next six months. “NextStudent plans to enter the Asset Backed Commercial Paper market next month by closing a $500 million deal led by JPMorgan. Citigroup and Banc of America Securities will be co-managers on the deal,” Wallace said.
About NextStudent
NextStudent, http://www.nextstudent.com/, listed at No. 17 on the Top 100 Consolidating Lenders for fiscal year 2005, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education lending products and services including an online scholarship search engine, federally guaranteed student and parent loans, private loans, student loan consolidation programs and college savings plans.
The NextStudent Scholarship Search Engine, one of the nation’s oldest and largest scholarship search engines, is updated daily, available free of charge, completely private – and includes a database of 2.4 million scholarships worth approximately $3.4 billion.
For more information about NextStudent and its student loan programs, please visit the company’s Web site.
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Posted by
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2:45 PM
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The Deficit Reduction Act of 2005, S. 1932, that was signed into law on Feb. 8 by President Bush continues to come under fire. Another lawsuit to declare that the legislation is unconstitutional was filed April 28 by Rep. John Conyers Jr., D-MI, ranking member on the House Judiciary Committee, who was joined in the suit by 10 Congress members including Rep. George Miller, D-CA, ranking member, House Committee on Education and the Workforce.
The first lawsuit to challenge the bill’s constitutionality was filed Feb. 13 by Jim Zeigler, Republican activist and Mobile, AL, elder law attorney. Public Citizen, a Washington-based nonprofit consumer advocacy group, on March 21 filed its own suit seeking to declare the Deficit Reduction Act’s unconstitutionality.
Different Versions of the Legislation
According to Democrats the House and Senate passed different versions of the legislation, therefore rendering the bill unconstitutional. The House passed a version of the bill that included funding for 36 months of durable medical equipment and the Senate’s version contained only 13 months. As a constitutional requirement, both the House and Senate must sign identical versions of a bill prior to it being signed into law by the president.
“Once again the Administration is playing fast and loose with the Constitution. Anyone who has passed the sixth grade knows that before a bill can become a law, both Houses of Congress must approve it. That the Bush Administration is now saying otherwise underscores the Constitutional crisis we are facing in this country,” said Conyers in an April 27 press statement released from his office. “Over 200 years of legal precedent dictate that such discrepancies can be handled through simply refiling the paperwork, or re-voting the whole bill. Because the bill cuts billions of dollars to the Nation’s most needy, the Republican leadership prevented a re-vote at all costs.”
Lawsuit Holds Spellings, Bush Accountable
Conyers suit names anyone responsible for the budget, which includes Secretary of Education Margaret Spellings and President Bush along with other parties responsible for enacting the budget cuts required by the Deficit Reduction Act, according to Democratic aides.
With his lawsuit, Conyers asks for the entire bill to be declared unconstitutional and, therefore, not law, Democratic aides said. The lawsuit asks that an interim restraining order be put in place to prohibit enactment of the law.
“Republican leaders were in such a rush to ram this bill through Congress and get the President to sign it that they violated the Constitution in the process,” said Miller in the press statement. “And they were in a rush because this was a very, very bad bill. They wanted to spend as little time as possible having to explain their backwards priorities -- like cutting $12 billion from financial aid programs for college students -- to their constituents.”
The lawsuit was filed in the Eastern District Court of Michigan, case No. 2:06-CV-11972. Judge Nancy Edmunds is scheduled to preside over the case; however, it is not known when the case will be heard.
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 NextStudents and Student Loan.
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