SOURCE: NextStudent

December 01, 2006 11:02 ET

NextStudent Offers Federal Stafford Loans Regardless of Need

PHOENIX, AZ -- (MARKET WIRE) -- December 1, 2006 -- Phoenix-based NextStudent, a premier education funding company, offers a non-need-based unsubsidized federal Stafford student loan for students who may not qualify for need-based subsidized Stafford student loans. Both programs offer great benefits; however, with unsubsidized Stafford student loans students are responsible for the interest on the loan but payment is deferred until after graduation. The current interest rate is set at a low 6.8 percent for both subsidized and unsubsidized Stafford student loans. Since the government sets all federal Stafford student loan interest rates, federal law prohibits the interest rate from exceeding 8.25 percent.

No credit check or collateral is required to receive Stafford student loans. Student borrowers do not need a co-signer and there is no guarantee fee. In addition, there never are prepayment penalties. Stafford student loans are taken out directly by students so, in effect, they help to build responsibility as students then take part in financing their own education.

Subsidized Stafford student loans are need-based and differ from unsubsidized Stafford student loans in that the interest on the loan is paid by the government as long as the student is in school, as well as during the grace and deferment period of the loan.

NextStudent features Education Finance Advisors who are professionally trained to help student borrowers with all their Stafford loan needs. Incentives to NextStudent's Federal Stafford Loan Program include a .25 percent rate reduction when payment is made through Auto-Debit and a 1 percent reduction after the first 36 consecutive on-time payments.

Stafford student loan repayment typically begins six months after graduation, with a $50 minimum monthly payment, which depends on the amount borrowed. Other options available for repayment include deferment, forbearance and income-sensitive.

Both subsidized and unsubsidized Stafford student loans are eligible for the Federal Student Loan Consolidation Program. Through student loan consolidation all of a student borrower's Stafford loans are combined into one, making repayment easier.

Through NextStudent, borrowers have various ways to help pay for college with benefits and incentives that make getting a higher education more manageable.

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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