SOURCE: NextStudent

April 06, 2007 12:16 ET

NextStudent Promotes Financial Planning and Debt Management

PHOENIX, AZ -- (MARKET WIRE) -- April 6, 2007 -- College costs sometimes can prove to be more than students and parents originally estimated. With new computers, rising tuition costs and textbooks, students and families may find themselves in need of more money than originally planned. Therefore, NextStudent, the Phoenix-based premier education funding company, urges high school seniors and their families to properly budget and consider all costs for which they will be responsible in the coming school year. Additionally, it is time for returning college students to re-estimate their college costs after auditing what they've spent over the past year and graduating college students to begin considering student loan consolidation.

With proper financial planning, families can be sure to cover any college-related costs that may arise. As a Federal Family Education Loan Program provider, NextStudent offers everything students and parents need to get student loans and college debt in order, including: Stafford, PLUS, Grad PLUS, Private and Consolidation loans.

Most Students Qualify for Stafford Loans

There are two types of Stafford loans, unsubsidized and subsidized, the difference being that the unsubsidized loan is not need-based. NextStudent offers both loan programs as well as aggressive, money-saving packages to students and families that can save thousands of dollars, including: zero origination fees, a 3 percent cash rebate on the remaining principal balance after the first 30 months of consecutive on-time payments when borrowers pay through auto-debit, and a .375 percent interest rate reduction when borrowers use auto-debit for repayment.

Loans for Parents and Graduate Students

Other smart financial strategies for parents or graduate students to pay for higher education are Parent Loans for Undergraduate Students (PLUS) and Graduate PLUS loans. Most borrowers qualify for PLUS loans because they are not based on financial need or income. These loans help families and students meet costs, beyond tuition and fees, with generous terms. Parents or graduate students can borrow up to 100 percent of total college costs, less any financial aid received.

If You Need Even More Money

Every once in a while parents or students find that college costs exceed the amount they initially borrowed. However, NextStudent offers Private student loans for undergraduate and graduate students that can be applied for and accessed at any time during the year. These student loans have a generous borrowing limit of $40,000 annually or the calculated cost of attendance (lesser amount). Students may not need a co-signer but must be enrolled in school at least half time. Private student loans also are available for distance learning and international students.

Consolidation Frees Up Money

Student loan consolidation is an easy way to increase cash flow and lower monthly payments by up to 60 percent. Graduating seniors can qualify over the phone in as little as five minutes. The program does not require credit checks or co-signers. NextStudent offers borrowers the option of three consolidation benefit packages: The "Standard Locked" package that offers a .25 percent discount when borrowers pay via auto-debit, and a 1 percent LOCKED RATE reduction after 36 consecutive on-time payments; the "2 %" package that offers a .25 percent discount when borrowers pay via auto-debit, and a 2 percent rate reduction after 36 consecutive on-time payments (not locked); and the "Google" package that offers a .25 percent discount when borrowers pay through auto-debit, a .375 percent discount after six months of on-time payments, and a 1 percent discount after 36 consecutive on-time payments (not locked).

NextStudent Gives Students More

NextStudent believes in personalized service and assigns an individual Education Finance Advisor to every customer. NextStudent's advisors can answer financial aid questions, and walk students and their families through the entire financial aid process.

Additionally, NextStudent promotes higher education in the local community. Because the financial aid process begins with the search for "Free Money," NextStudent offers a free online Scholarship Search Engine that has 42,000 college funding sources for over 2.4 million individually awarded scholarships valued at over $3.4 billion.

Currently, NextStudent is promoting its free Scholarship Search Engine by sponsoring a "Rock My Grad Party" contest among high schools and students in the Phoenix area. The winning school will win $5,000 to help fund its 2007 Senior Class Party, and one student will win a laptop computer. In addition, teachers, counselors and students will have full access to NextStudent's Scholarship Search Engine. For more information e-mail Amy Bookbinder at

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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