SOURCE: NextStudent

October 13, 2006 11:22 ET

NextStudent's Federal Stafford Student Loans Feature Unmatched Incentives

PHOENIX, AZ -- (MARKET WIRE) -- October 13, 2006 -- College students first should look to scholarships and federal grants to help fund their education. When their "free money" options are used up, they then should look to federal student loans, such as federal Stafford student loans. Phoenix-based NextStudent, the premier education funding company, offers a host of benefits and incentives on top of the already low Stafford loan interest rate of 6.8 percent.

Federal Stafford student loans are government-secured and no collateral or credit check is required. Students are not required to have a co-signer and there is no guarantee fee, making it easy for student borrowers to obtain the student loans they need to get them through college.

Since the high cost of college can seem like a heavy load to carry, NextStudent offers discounts to help make student loan repayment more manageable. The company's Education Finance Advisers are professionally trained and are there to offer advice and assistance to student loan borrowers about the Federal Stafford Student Loan program. Features include:

--  An upfront cash rebate of 2 percent. Borrowers receive the full amount
    for which they qualify at disbursement. Borrowers must participate in Auto-
    Debit and make one on-time monthly payment to qualify.
--  An interest rate reduction of 2 percent: 1 percent following the first
    12 months of consecutive on-time payments, with an added interest rate
    reduction of 1 percent following 24 months of consecutive on-time payments.
--  An interest rate reduction of .375 percent when borrowers pay though
    Auto-Debit.
    
Federal Stafford student loans either are subsidized or unsubsidized. With subsidized student loans the government pays the interest while a student is in school and during grace periods and deferment. Students must show financial need in order to qualify. In contrast, students pay the interest on unsubsidized loans, but payment is deferred until after graduation. These student loans are not dependent on financial need, so all students are eligible.

There are no prepayment penalties with Stafford student loans, and repayment usually begins six months following graduation. Alternate repayment plans are available, which include deferment and forbearance. The loans are eligible for federal student loan consolidation.

Federal Stafford loans have eligibility requirements. A student borrower must be a U.S. citizen or eligible noncitizen, a high school graduate or possess an equivalency diploma, current on existing federal education loans, and enrolled in a degree or certificate program at least half time.

With already low rates on federal Stafford student loans, student borrowers have a great choice to help make it easier to go to college. NextStudent's benefits and incentives help make the loans much more manageable and affordable. Student borrowers can rest easy and know they have a reasonable way in which to pay for college.

About NextStudent

NextStudent, http://www.nextstudent.com/, 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 http://www.nextstudent.com/.

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