SOURCE: NextStudent

May 31, 2007 12:44 ET

NextStudent Offers Plus Loans for Parents and Graduate Students

PHOENIX, AZ--(Marketwire - May 31, 2007) - According to NextStudent, a leading Phoenix-based education funding company, Parent Loans for Undergraduate Students, or PLUS Loans, are a smart financial strategy that can help parents help their children pay for college costs. Parents can borrow up to the entire cost of their child's education (less any federal aid), including books, supplies, and even a computer for each year a child is enrolled in college at least half time.

The Federal PLUS Loan is available even if a parent already paid tuition and most other education expenses. It is a federal loan, which means that the federal government sets the maximum interest rate.

One of the perks of PLUS Loans is that they are not based on a parent's income or financial need. Therefore, parents cannot be turned down for a PLUS Loan based on their income level. However, parents should be advised that they and their children must fill out the FAFSA, or Free Application for Federal Student Aid, to be eligible for a PLUS Loan, and that parents can be turned down for PLUS Loans based on an adverse credit history.

NextStudent offers a simple and easy online PLUS Loan application with E-Signature. Additionally, NextStudent offers competitive PLUS Loan benefits that can be earned by borrowers to help save them money. These benefits include:

--  A 3 percent cash rebate on the remaining principal balance of their
    loan after the first 12 months of consecutive on-time payments
--  A 2 percent interest rate reduction after the first 48 months of
    consecutive on-time payments
--  A .25 percent interest rate reduction for electing to use auto-debit
NextStudent also offers a PLUS Loan for graduate and professional students. The Graduate PLUS Loan is very similar to the traditional PLUS Loan; however, it allows graduate and professional students, and not their parents, to borrow up to the entire cost of their postsecondary education (less any other aid). As with the traditional PLUS Loan, that includes books, supplies, and any other postsecondary education expenses.

PLUS Loans are smart financial strategies for parents and graduate students that help meet the costs of a college education while also offering financial flexibility. Repayment options include deferred repayment while the student is enrolled in school at least half time (Graduate PLUS only) as well as federal student loan consolidation eligibility.

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.

For more information about NextStudent and its student loan programs, please visit the company's Web site at

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