SOURCE: NextStudent

August 28, 2007 09:00 ET

NextStudent Urges Borrowers to Take Advantage of Student Loan Discount Benefits Before They Disappear

PHOENIX, AZ--(Marketwire - August 28, 2007) - In anticipation of pending federal legislation that could adversely affect federal student loan lenders throughout the country, NextStudent, a leading Phoenix-based education funding company, is faced with the prospect of eliminating the rate reduction incentive package it currently offers on its federal education loans, including Stafford, PLUS, Grad PLUS and Federal Consolidation Loans.

The pending legislation will not affect NextStudent's current borrowers. However, for new customers to get the current rate discount benefits before it's too late, NextStudent is urging parents and students to apply for their federal student loans from NextStudent by August 31, 2007.*

NextStudent rewards federal education loan borrowers with generous and competitive rate discounts:

--  An immediate 0.25% rate reduction just for signing up to have loan
    payments automatically deducted from a savings or checking account
--  A 1% rate reduction after 36 on-time payments -- NextStudent will lock
    in this rate reduction for the life of the loan, even if a borrower misses
    a payment later on
--  An additional 1% rate reduction after 48 consecutive on-time payments

Borrowers who take advantage of these benefits can get a total discount of 2.25% on their NextStudent federal student loans. And borrowers who consolidate their federal education loans with NextStudent's rate reductions can lower their monthly payments by up to 60%.

NextStudent urges borrowers to take advantage of its rate discount program before it's a thing of the past.

*NextStudent will discontinue the interest rate discount benefit plan described above if Congress enacts the College Cost Reduction Act of 2007 or similar legislation. Provisions within that legislation would change the fee structure and yields for lenders that make federal education Loans. It is not known at the time of this printing on which date the new provisions will take effect, nor whether they would be applied to federal education loan applications that had been submitted prior to that date but not yet funded. However, it appears likely that the legislation will affect loans funded on or after October 1, 2007. NextStudent will not offer the interest rate discount benefits described above for those federal education loan applications that are subject to the new provisions. NextStudent will make its best efforts to expeditiously process all federal education loan applications it receives prior to August 31, 2007, but cannot guarantee that any particular application will be processed in time for the interest rate discount benefits to apply.

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.

For more information about NextStudent and its student loan programs, please visit the company's website at

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