Guide to Education Grants

Another Student Loan Resource:
For the last few years, college tuition has been on the rise across the United States. In 2004/05 Arizona students paid $10,863 in tuition and fees to attend four year public colleges and $19,448 to attend four year private colleges. With approximately 35,366 Arizona residents between 18 and 24 with a Bachelor’s degree, recent grads are feeling the financial burden and are in search of student loan management solutions.
 
NextStudent, the Phoenix-based premiere education funding company, recommends the Federal Student Loan Consolidation Program as a smart strategy to free up extra cash, improve credit scores and help manage the monthly budget.
 
The program was created by Congress to help simplify student loan repayment and make monthly payments more affordable for the newly graduated student. The term on a consolidation loan is 30 years, 18 years longer then the term on student loans, which can lower monthly payments by up to 60%.
 
By consolidating federal student loans, borrowers bundle multiple loans into one single loan. Therefore, credit reports reflect payment in full on the multiple outstanding loans which can help recent graduates qualify for lower interest rates on car loans and/or mortgages.
 
Consolidation with NextStudent is free of charge and there are no fees or prepayment penalties. NextStudent offers an easy online application with Electronic Signature, and NextStudent’s personal Education Finance Advisors help walk students and parents through the consolidation process.
 
When to Consolidate
 
It is easy to qualify for a NextStudent consolidation loan. All a student or parent needs is at least two federal student loans from two different lenders that total $10,500. In as little as 5 minutes applicants can qualify for consolidation over the phone, and get their questions answered by an individually assigned Education Finance Advisor. The program does not require credit checks or co-signers.
 
Student borrowers are eligible to consolidate during the grace or repayment period of their student loans. NextStudent offers students a “New Grad” incentive, a .6 percent discount off of the fixed interest rate, if they consolidate during the six month grace period after graduation.
 
Parents can consolidate federal PLUS loans after the final distribution of the loan. They do not need to wait until the student graduates from college. Because consolidation is based on a borrower’s social security number, parents can consolidate multiple PLUS loans taken out for multiple children.
 
Additional Incentives
When borrowers consolidate their loans, they lock the new loan in at a fixed interest rate. Because these are federal loans, that interest rate is set by the government. Therefore, when choosing a company to consolidate with, borrowers should look at the incentive packages offered by lenders because these are the only true differences between lending companies.
 
NextStudent offers borrowers the option of three packages. The “Standard Locked,” which offers a 1 percent LOCKED RATE reduction after 36 consecutive on-time payments and a .25 percent discount when the borrower opts to pay via Auto-Debit; the “2 %,” which offers a 2 percent rate reduction after 36 consecutive on-time payments and a .25 percent discount when the borrower opts to pay via Auto-Debit; and the “Google,” which offers a .375 percent discount after six months of on-time payments, a 1 percent discount after 36 consecutive on-time payments and a .25 percent discount when borrower opts to pay via Auto-Debit.
 
Student loan consolidation is a smart financial strategy that helps borrowers better manage their loans. With a lower monthly payment and only one check to write per month, the borrower saves time and money while easily managing their loan portfolio.
 
The student loan advisers at NextStudent are helpful and knowledgeable about student loans. They are a trusted source in getting you the appropriate information about your student loan consolidation, student loan options and helping students get the college financing they need. Go to www.nextstudent.com for more information.
Be sure to tune in next Thursday for my next blog on student loan advice.
 Student Loan Girl
 
 
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This entry was posted on Friday, March 9th, 2007 at 10:11 am and is filed under Student Loans. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.