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The www.FedPrimeRate.com Personal Finance Blog and Magazine

Friday, June 23, 2006

The Student Loan Consolidation "Single-Lender Rule" Has Been Repealed by H.R. 4939

On June 15, 2006, President Bush signed The Emergency Supplemental Spending Bill--H.R. 4939-- into law. The passing of H.R. 4939 means that the student loan consolidation Single-Lender Rule has been repealed, so now student loan debtors can consolidate their student loans with any lender they choose (click here for some more background on the Single-Lender Rule.)

Now that student loan debtors have the freedom of choice, NextStudent.com--the company which offers no cost student loan consolidation--urges borrowers to consolidate before consolidation rates rise on July 1, 2006 (only 1 week left!)

For more, here's a clip from yesterday's press release:

"The single-lender rule that prohibited student borrowers from consolidating their student loans with the lender of their choice was repealed June 15, 2006 when President Bush signed into law the emergency supplemental spending package, H.R. 4939. This has paved the way for student borrowers to consolidate their federal student loans with the lender of their choice at low interest rates before the July 1, 2006 rate increase of 1.84 percentage points.

In order to take advantage of the low interest rates, student borrowers now are urged to consolidate before the July 1 deadline, according to NextStudent, the Phoenix-based premier education funding company. The well-established company offers low rates and unmatched benefits and incentives to all student borrowers.

By consolidating before the deadline, student borrowers will avoid an interest rate hike that is the second-largest rate increase in the history of the federal student loan program. Some of the expected new rates include: a 6.8 fixed rate for Stafford loans disbursed on or after July 1, 2006, and an 8.5 percent fixed rate for PLUS loans disbursed on or after July 1, 2006.

With consolidation, a borrower’s various loans are combined into one loan and one monthly payment at a low interest rate that is locked for the loan’s life. Repayment terms can be extended and thousands saved over the long term.

NextStudent’s offerings of low rates, aggressive benefits and discounts along with top-notch customer service are unrivaled in the student loan industry. The company offers a 2.5 percent interest rate for qualified borrowers, when benefits are applied: 0.60 percent reduction for students who consolidate after graduation; 0.25 percent reduction with use of Auto Debit; and an additional 1 percent for making 36 consecutive on-time payments.

Student borrowers now can consolidate their loans through the lender of their choice. With less than two weeks until the July 1 deadline, student borrowers are urged to consolidate their loans to get the best rate and incentives before the rate increase.

About NextStudent

NextStudent, federal lender code 834051, 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, completely private – and represents 2.4 million scholarships worth $3.4 billion."


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