Federal Student Loan Consolidation Can Lower Student Loan Payments by up to 42%
February 5, 2008 Federal Student Loans No CommentsPHOENIX, AZ–(Marketwire - January 10, 2008) - Graduates and parents with outstanding federal parent or student loans may be able to lower their monthly student loan payments by up to 42% simply by consolidating their parent or student loans. Federal student loan consolidation allows borrowers to lock in their monthly payments, replacing variable-rate student loans with a fixed-rated consolidation loan. Student loan consolidation can also give parent and student loan borrowers up to 20 more years to repay their student loans. NextStudent, a leading Phoenix-based education funding company, offers a student loan consolidation program with no application fees, no processing fees, and no credit checks. With the NextStudent federal student loan consolidation program, borrowers can bundle all their eligible federal parent and student loans into one single consolidation loan with one lender, one monthly bill, and one fixed monthly payment, putting an end to multiple student loan bills, multiple due dates, and multiple monthly payments to multiple lenders.
By consolidating their college loans with NextStudent, borrowers could extend the repayment term on their parent and student loans by up to 20 years. With more time to pay off their college loans, borrowers may be able to cut their monthly payments by up to 42 percent: For example, estimated monthly payments on a $75,000 NextStudent Federal Consolidation Loan fixed at 7.25% and repaid over an extended term of 30 years are $512, versus estimated monthly payments of $879 on a $75,000 Federal Stafford Loan issued at 7.22% and repaid over 10 years — a 41.8% reduction in monthly payment amount. (Actual payment reduction may vary and will depend on the terms of the college loans being consolidated.)
A NextStudent student loan consolidation also eliminates the uncertainty of variable interest rates. Parents and students who took out any PLUS loans or Stafford loans prior to July 1, 2006, are subject to variable interest rates that adjust every year. But by consolidating their student loans at a fixed interest rate, parents and graduates can put a stop to rate increases and rising payments on their variable-rate federal PLUS and Stafford loans.
Borrowers can apply for their NextStudent Federal Consolidation Loan in minutes online or over the phone. It’s fast, easy, and free to apply, and there are no fees, no credit checks, and no co-signers required. There are also no prepayment penalties, so borrowers who consolidate their parent or student loans will never be charged for paying more than the minimum each month or for paying off their student consolidation loan early.
Borrowers who have private student loans in addition to (or instead of) federal student loans won’t be able to consolidate their private student loans with the federal student loan consolidation program. But borrowers looking for the same convenience of a single consolidated loan for their private student loans may be eligible to consolidate their private loans separately with a NextStudent Private Consolidation Loan.
About NextStudent
NextStudent 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 finance products and services, including a free online scholarship search engine, federally guaranteed parent and student loans, private student loans, both federal and private 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, and has a database of more than 5.9 million scholarships worth over $16 billion.
For more information about NextStudent and its student loan programs, please visit our website at www.nextstudent.com.
