SOURCE: NextStudent

December 15, 2006 11:29 ET

NextStudent Offers Consolidation on PLUS Loans Taken Out for Different Children

PHOENIX, AZ -- (MARKET WIRE) -- December 15, 2006 -- According to NextStudent, the Phoenix-based premier education funding company, parents can consolidate multiple PLUS loans -- Parent Loans for Undergraduate Students -- into a single loan, even if those student loans were taken out to fund the education of different children. Therefore, if a parent has three children in college at one time and takes out a PLUS loan to cover college costs for each child, the parent can consolidate those three student loans into one loan.

Similar to most student loans, PLUS loans are identified by Social Security number. It is the borrower, not the specific child's education that determines student loan consolidation. However, each PLUS loan taken must be obtained by the same parent in order to qualify for student loan consolidation. In addition, if that same parent takes out multiple PLUS loans, over multiple years, those additional yearly student loans qualify for consolidation, making for one loan, at an extended term and a lower monthly payment.

The Federal PLUS Loan is a smart and easy way for parents to pay for their child's college education and is not based on financial need or income. Also, because it is a federal student loan, the interest rate is as low as 8.5 percent. Parents can borrow up to 100 percent of the total college costs, less any financial aid received.

NextStudent offers an excellent PLUS loan benefit package that not only provides parents with the money they need to send their children to college, but also offers personalized service and incentive features. With a PLUS loan through NextStudent, parents also receive: 3 percent cash rebate at repayment on the remaining principal balance after the first 12 months of consecutive on-time payments, 2 percent interest rate reduction after the first 48 months of consecutive on-time payments, .25 percent interest rate reduction when repaying through Auto-Debit, simple application process with E-Signature, a Credit Solutions program for borrowers who receive an initial denial due to unresolved credit issues, an 87 percent success rate at qualifying borrowers through NextStudent's PLUS Credit Resolution Team, several repayment options including deferred repayment while the student is enrolled at least half time in school, and no prepayment penalties -- ever.

For each year a child is in college parents can renew a PLUS loan. The Master Promissory Notes (MPN) completed during a PLUS loan's initial application are good for 10 years as long as the student stays at the same school, files the FAFSA each year, and the parent has approved credit. Parents must contact the school's financial aid office and submit a PLUS loan renewal form. Parents should remember that a "renewed" PLUS loan is regarded as a "new" student loan. Renewed PLUS loans are separate from the PLUS loans from prior years, but they do qualify for student loan consolidation.

PLUS loans through NextStudent are a great way for parents to help their children fund the college education that will help them succeed well into the 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 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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