SOURCE: NextStudent

July 06, 2007 12:17 ET

NextStudent Urges Wisdom When Considering College Debt Repayment Strategy

PHOENIX, AZ--(Marketwire - July 6, 2007) - Graduating college students across the country recently have received their degrees and are taking their first steps into the real world, which includes repaying their student loans. According to NextStudent, a leading Phoenix-based education funding company, composing a strategy for repaying college student debt is simple, once borrowers are armed with accurate, easily applicable information.

Fortunately, repayment of most student loans does not begin immediately after graduation. This gives borrowers the time to organize their finances, put together a budget, and figure out how they will begin making payments. With Perkins Loans repayment is not mandatory until nine months after graduation. On the other hand, with Stafford Loans students may not have to start repaying the loan until six months following graduation. Repayment for PLUS Loans (Parent Loans for Undergraduate Students) and PLUS Loans for Graduates are different. Students or their parents must begin the repayment process only 60 days after the PLUS loan funds have been disbursed.

In many cases and for different reasons borrowers are not able to begin repayment once the grace period has expired. As such, borrowers may opt to defer their payments for six months or a year and may reapply annually. Borrowers may qualify for deferment if they are experiencing economic hardship, unemployment, or certain other conditions. Deferments may be extended for up to a total of three to five years. With deferment borrowers may accrue interest on their account with the exception of subsidized Stafford Loans, so it is ideal to begin repayment as soon as possible.

Student Loan Consolidation is a great means for repayment for those borrowers who have a considerable amount of college debt requiring several payments to different lenders. In order to plan ahead and so that students are aware of their obligations, they should contact all of their lenders to get details on the student loan balances, interest rates, required payments, and terms on the student loans.

With a NextStudent Consolidation Loan parents and their children receive one of the most competitive packages in the industry, as well as quality, professional service. When borrowers contact NextStudent they are assigned their own personal Education Finance Advisor who will guide them though the student loan consolidation process, inform them of their options, and answer any questions they might have.

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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