SOURCE: ScholarPoint Financial

June 24, 2005 08:00 ET

ScholarPoint.com Offers Innovative Online Paperless Option for Student Loan Consolidation

ScholarPoint.com Develops Cutting Edge Technology to Allow for Last Minute Student Loan Consolidation Just in Time Before Interest Rates Increase July 1, 2005

LA JOLLA, CA -- (MARKET WIRE) -- June 24, 2005 -- Interest rates on student loans will increase by 1.93% on July 1 -- the largest single-year increase in the 40-year history of the federal student loan program. According to Chris Studer, Founder and CEO of ScholarPoint Financial, current and former students can beat the July 1 increase and save thousands of dollars in interest by rolling outstanding student loan debt into a fixed-rate federal consolidation loan.

ScholarPoint is an online education lender that offers a unique, cutting-edge method that has made consolidating student loans quick and easy. Unlike many other traditional student loan websites -- which are online lead generation sites for commissioned telephone sales teams -- applying for a Consolidation loan with ScholarPoint can be done entirely online. There are no credit checks, fees, or income verification. Borrowers can save even more if they consolidate while still in-school or during their grace period. Smart borrowers that take advantage of this opportunity can reduce their monthly payments by up to 70% and can also qualify for up to 1.5% in ScholarPoint interest rate discounts for auto payment and on-time payments -- which could make the rate as low as 1.375%.

Federal Stafford and PLUS loans carry a one-year variable interest rate. Every year in July the interest rate charged on a student loan resets based on rates tied to Treasury Bills. For the first time in four years repayment rates on these loans will go up by 1.93% on July 1, leaping from 3.37% to 5.3%.

Parents and students who have taken out student loans to help pay for college do now have a way to lock in today's record low rates before they increase. A federal Consolidation loan can be used to pay off existing variable rate federal student loans and fix the current low interest rate for the life of the loan. According to Studer, a student or parent with $25,000 in loans would save over $6,000 in interest if they consolidate before July 1.

The impending 1.93% rate increase will affect all federal student loans that are not consolidated prior to July 1, 2005. With ScholarPoint's online student loan consolidation services borrowers will be able to consolidate their loans and lock in the lower rate until midnight on June 30. Students in their grace period can consolidate now to get the lower rate but still keep the benefit of not starting payments until the end of their grace period. In addition to the rate increase, the Department of Education recently announced a major change to the entire consolidation program: students now can consolidate their student loans while they are still in school and take advantage of the current all-time low interest rate of 2.77%.

About ScholarPoint Financial (www.ScholarPoint.com)

ScholarPoint is the only complete online student loan site. Its technology platform, designed exclusively for its education finance Web site, enables the most important steps of the loan process to happen instantly. Students and parents can research the best loan package, Sign Online ™ using ScholarPoint's E-signature, and track their up-to-the-minute loan status all in a private and secure online environment. ScholarPoint's Get Help Now!™ customer support offers knowledgeable advice and guidance through the entire process. Unlike many other traditional loan sites, ScholarPoint integrates the entire process for an online experience that is simple, instant, and complete. ScholarPoint is headquartered in La Jolla, California. For more information on how to consolidate student loan debt, visit www.ScholarPoint.com.

Contact Information

  • Media Contacts:

    Lee Mills
    Vice President, Online Marketing
    ScholarPoint Financial Inc.
    Office: 858.228.4715
    Cell: 619.847.8424
    Email Contact

    Chris Studer
    Founder, CEO & President
    ScholarPoint Financial Inc.
    Office: 858.228.4705
    Cell: 858.945.0807
    Email Contact