SOURCE: NextStudent

September 22, 2006 13:29 ET

NextStudent's PLUS Loans Make It Easy for Parents to Fund Their Children's College Education

PHOENIX, AZ -- (MARKET WIRE) -- September 22, 2006 -- Parents who use their savings to help pay for their children's college education oftentimes are doing themselves a great disservice. It is important for parents not to deplete funds that are slated for their future or emergency situations, according to NextStudent, a premier education funding company based in Phoenix. Instead, the company suggests parents take out a PLUS Loan -- Parent Loans for Undergraduate Students.

Federal PLUS Loans are a perfect option for parents who want to help their children get to and through college. NextStudent's rates start as low as 6.25 percent when coupled with incentives that include a 2 percent rate reduction following the first 48 months of on-time payments and a .25 percent reduction when repayment is made through Auto Debit.

Instead of using hard-earned savings, parent borrowers can easily apply for PLUS Loans and borrow up to the full cost of college, less any financial aid. The loans can cover tuition, fees, housing, transportation, books and supplies. Every parent is eligible for a PLUS Loan, regardless of income, because PLUS Loans are not based on financial necessity. In addition, the loans are available throughout the year, and the process for preapproval is quick and simple.

Parent borrowers receive even more benefits and incentives with NextStudent's PLUS Loan program:

--  A 3 percent cash rebate on the remaining principal balance after the
    first 12 months of consecutive on-time payments.
--  Easy Application Process featuring E-Signature. Borrowers can be
    qualified in minutes with the online application. Borrowers also can take
    advantage of NextStudent's "second look" if they initially are denied due
    to unresolved credit matters.
--  NextStudent's PLUS Credit Resolution Team has an 87 percent success
    rate at resolving credit issues for borrowers, and resolutions result in
    funded PLUS Loans.
--  Various options for PLUS Loan repayment include deferred repayment
    when a student is enrolled at least half time at school.
PLUS Loan repayment begins within 60 days of final disbursement, and the repayment term typically is 10 years. There are no prepayment penalties and PLUS Loans are eligible for federal student loan consolidation. In addition, the interest may be tax-deductible.

Keeping and growing a savings plan is important for parents. Instead of using savings to help pay for their children's college costs, parents have a great option when they choose PLUS Loans through NextStudent. The aggressive benefits and incentives help make it financially easier for parents to help their children get a college degree while parents continue to save for their own future.

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 college 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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