SOURCE: NextStudent

August 03, 2006 13:01 ET

NextStudent's PLUS Loans Benefit Parents and College Students

PHOENIX, AZ -- (MARKET WIRE) -- August 3, 2006 -- With federal PLUS Loan interest rates as low as 6.25 percent, parents can offer a helping hand with their children's education costs. Phoenix-based NextStudent, the premier education funding company, offers PLUS Loans -- Parent Loans for Undergraduate Students at low rates when coupled with incentives and benefits that make it easy to pay for college.

The 6.25 percent PLUS loans interest rate offered through NextStudent is available when accompanied by aggressive incentives including a rate reduction of 2 percent following the first 48 months of on-time payments, and a rate reduction of .25 percent with repayment through Auto Debit.

With PLUS Loans parents can cover 100 percent of education costs of their dependent children, including tuition, room and board, and supplies, less any financial aid received. For the 2006-07 academic year, parents can borrow all education costs up through May 31, 2007. In addition, parents who already paid education expenses can be reimbursed through PLUS Loans.

PLUS Loans are not based on financial need, so regardless of financial circumstances parents cannot be turned down. NextStudent's PLUS Loan Program includes a quick and easy pre-approval process, eligibility for federal loan consolidation, and interest that may be tax-deductible.

The repayment term on federal PLUS Loans typically is 10 years and starts within 60 days of final disbursement. Moreover, there never are prepayment penalties.

Other benefits of NextStudent's federal PLUS Loan Program include:

--  A cash rebate of 3 percent on the remaining principal balance
    following the first 12 months of consecutive on-time payments.
--  Simple Application Process with E-Signature is done online and can be
    qualified within minutes. NextStudent also offers a "second look" to
    borrowers who initially are denied due to unresolved credit problems.
--  NextStudent's PLUS loan Credit Resolution Team has an 87 percent
    success rate when resolving credit issues of borrowers that result in
    funded PLUS Loans.
--  Various PLUS Loan options for repayment, including deferred payment
    when a student is enrolled at school at least half time.
In order to be eligible for a federal PLUS Loan a parent must be a biological, adoptive or step-parent of a dependent undergraduate; a U.S. citizen or eligible noncitizen; and able to meet minimum federal standards of creditworthiness. Students of parents must be U.S. citizens or eligible noncitizens; less than 24 as of Dec. 31 of academic year; and unmarried without dependents.

Parents can help their children receive full funding for college with federal PLUS Loans through NextStudent. The loans are a great way to pay for college and offer parents excellent terms, incentives and benefits that often are better than other consumer loans.

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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