| Recent Laws Affect Student Loan Consolidation | | | | A lower rate student loan consolidation through |
| Legislation recently passed is expected to turn the | | | | NextStudent is the right way to go. The reduced |
| federal student loan program on end, most notably | | | | rates often come with incentives for borrowers in |
| student loan consolidation. On July 1, interest rates will | | | | the form of longer payment terms, no prepayment |
| increase while new rules and regulations will make it | | | | penalties and, best of all, one simple monthly |
| more difficult for students to consolidate their loans. | | | | payment. |
| In February President Bush signed the Deficit | | | | Other regulations are expected to take effect, so |
| Reduction Act of 2005, S. 1932, into law after it was | | | | borrowers beware and take action now. With July 1 |
| narrowly approved Dec. 21 by the Senate. Of all the | | | | coming fast upon us, it is smart to lock in student |
| federal programs impacted by the Deficit Reduction | | | | loan consolidation rates before consolidation becomes |
| Act, the federal student loan program is being hit | | | | too problematic. |
| hardest with $12 million in cuts. | | | | With the new legislation, changes to student loan |
| Student Loan Consolidation: Do It Now! | | | | consolidation will include: |
| In order to avoid some of the negative effects, | | | | - Retaining the single holder rule |
| borrowers now can take advantage of student loan | | | | - Elimination of spousal consolidation |
| consolidation, as there still is time before the July 1 | | | | - Elimination of in-school student loan consolidation |
| deadline. | | | | until borrower has less than six credits |
| To qualified borrowers, NextStudent, an education | | | | Student loan consolidation through NextStudent |
| funding company, offers a 2.75 fixed rate, with | | | | offers: |
| benefits applied, for those looking to slash their | | | | - Reduced or postponed monthly payments |
| student loan consolidation payments up to 70 | | | | - An end to interest rate hikes |
| percent. | | | | - Free government program and no fees or costs |
| Student loan consolidation rates for current in-school | | | | - One-minute qualification |
| borrowers now are set at 4.75 percent. Borrowers | | | | Student loan consolidation as we know it will come to |
| can lock in their rates and stop any increases to their | | | | an end on July 1. Taking advantage now of lower |
| federal rates – as long as they consolidate | | | | interest rates is a way to lock in your rate for a |
| before July 1. | | | | better financial future. |
| Incentives for Student Loan Consolidation | | | | |