SOURCE: NextStudent

September 15, 2006 12:38 ET

NextStudent's Consolidation Program Still Saves Student Borrowers Money, Makes Life More Manageable

PHOENIX, AZ -- (MARKET WIRE) -- September 15, 2006 -- Now is the time for student borrowers in their grace period to consolidate their student loans, even if they missed the July 1, 2006 interest rate increase. According to Phoenix-based NextStudent, a premier education funding company, those student borrowers with federal Stafford loans can receive an interest rate reduction of .6 percent.

Repayment on current student loans now is 7.25 percent. However, borrowers who had student loans prior to July 1 now can receive a federal student loan consolidation rate of 6.625 percent with the .6 percent interest rate reduction. NextStudent offers other aggressive incentives that can lower students' rates even more:

--  Borrowers receive a .25 percent rate reduction when they repay with
    Auto Debit.
--  An added 1 percent interest rate reduction is available and locked for
    the life of the loan after borrowers make the first 36 consecutive on-time
    payments, OR a 2 percent reduction is available after 48 consecutive on-
    time payments.

With federal student loan consolidation, student borrowers save time and money, as all loans are combined together into one simple loan, making payment more manageable. There are no fees, charges or prepayment penalties. In addition, depending on the repayment term, borrowers easily can save thousands over the long term.

NextStudent's federal student loan consolidation application process is easy, and students do not need to know their current student loan portfolio. There are no credit checks and a co-signer is not needed. The no-hassle application has four simple steps and is done with Electronic Signature.

Repayment can be as much as 30 years, depending on the total balance of the student borrower. Repayment options include graduate and income-sensitive. Also available are deferment and forbearance options.

Student loan borrowers should take advantage of their grace period to receive the automatic .6 percent rate reduction to consolidate their student loans. By taking advantage of NextStudent's aggressive incentives, borrowers can receive an even lower interest rate and save thousands over the long term.

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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