SOURCE: NextStudent

March 23, 2007 11:47 ET

NextStudent Champions Savings Through Federal Family Education Loan Program

PHOENIX, AZ -- (MARKET WIRE) -- March 23, 2007 -- NextStudent has a history of helping college students, both undergraduate and graduate, by offering generous discounts and incentives for those who fund new student loans or consolidate student loans into one. NextStudent keeps borrowers' best interests at heart and in doing so has built a track record of saving students thousands of dollars.

Since all students want to save as much money as possible when it comes to financing their college education, every little bit helps. Unfortunately, if pending student loan legislation becomes law, those few benefits still available to borrowers who use the Federal Family Education Loan Program (FFELP) are in danger of disappearing, perhaps for good.

The current student loan legislation pending before the Senate stipulates that borrowers must use the government's Federal Direct Lending Program (FDLP), under the guise that cutting out private lenders and dealing directly with the funding source will save taxpayers money. Unfortunately, the government's FDLP program has been a dismal failure, as it has not saved any money over the course of the program's 17-year history and is running at a deficit of $16.5 billion that likely will be passed on to taxpayers.

In actuality, cutting private lenders out of the equation will harm borrowers in the long run. The proposed legislation also will double FFELP lender fees, double costs, and likely eliminate the same generous savings currently enjoyed by borrowers. If the government becomes the "go to" lender, many FFELP lenders will go out of business, resulting in only a very few remaining larger players.

When NextStudent entered the market, the company was among a handful of lenders offering money-saving benefits and discounts. Students then started saving a significant amount of money, approximately a billion dollars in 2006 alone. One area that NextStudent has helped students save thousands over the course of their student loans is through consolidation. For example, with NextStudent's Standard Locked Student Loan Consolidation Package, borrowers receive a 1 percent LOCKED interest rate reduction after 36 consecutive on-time payments.

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 http://www.nextstudent.com/.

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