Education Finance & Investment Career Federal Family Education Loan Consolidation Helps Students Save
The Federal Family Education Loan Program (FFELP) helps students and their families save money by bundling multiple student loans into a single student loan, locking in the new student loan at a low interest rate and offering benefits in the form of interest rate reductions. H.R. 5, a bill recently passed by the House of Representatives and now being debated in the senate, will have a negative impact on Federal Consolidation Loans if it is approved by the senate and becomes law.
This legislation doubles the fees paid by FFELP lenders to provide federal student loans, which may eliminate the incentive benefits offered by FFELP lenders. It also encourages colleges to participate in the Direct Lending Program, which does not offer many interest rate reduction benefits to students when they do a student loan consolidation on their student loans.
Loss of Benefits Costs Students
According to NextStudent, the Phoenix-based premier education funding company, over the past three years, 4,653,000 students consolidated their federal student loans through FFELP lenders. As result of the interest rate reductions offered by FFELP lenders, such as NextStudent, a borrower who consolidated $30,000 last year could save $3,513 more than a borrower who consolidated with the Direct Lending Program. Additionally, a medical student could save more than $47,512 over the life of his or her student loan by consolidating with FFELP. These would be the savings lost if the current legislation becomes law.
Student Loan Consolidation Locks In Interest Rates
Federal student loan consolidation is free of charge and can lower monthly payments by up to 60 percent. Also, there are no prepayment penalties. NextStudent offers some of the most aggressive benefits in the industry including a discount of .25 percent for Auto-Debit and a 1 percent LOCKED interest rate reduction after the first 36 on-time payments. These benefits can save borrowers thousands of dollars over the life of their consolidated student loan.
Other packages include the Google Package: a discount of .25 percent for Auto-Debit, a .375 percent discount after six months of on-time payments and a 1 percent discount after 36 on-time payments (not locked). The 2% Package features a discount of .25 percent for Auto-Debit and a 2 percent discount after 36 on-time payments (not locked).
Qualify over the phone in as little as five minutes. NextStudent’s personally assigned Education Finance Advisors will walk you through the student loan consolidation process from start to finish.
NextStudent believes that getting an education is the best investment you can make, and it is dedicated to helping you pursue your education dreams by making college funding simple. Learn more about Student Loans and Student Loan Consolidation at NextStudent.com.
Related Tags: student loans, student loan consolidation, student debt consolidation, federal student loans, federal student loan, federal direct loans, h.r.5, hr5
Your Article Search Directory : Find in Articles
Recent articles in this category:
- Ideas For Finding a Nanny Job
Looking after the welfare of children is a very important job. The role of caregivers in the present - What There is to Know About a Temp Agency
A temp agency is a place were skilled office workers can go to get work. There are a number of diffe - Discovering the Many Ways a Temp Agency Can Assist in a Down Economy
When out of money and unable to find work, often times can look hopeless. However, for many who have - Careers That Require Financial Responsibility
Keeping your finances in order is important for any adult, but if you want to work in certain career - What You Need To Know About Resumes And Cover Letters
If the ways of getting employed is composed of steps, the first task would be to come up with an imp - How To Increase Your Chances Of Getting Hired
In trying to get a job, the person that you are going to impress, aside from your would-be boss, wou - Tips on How to Get Hired in a Flash
Unemployment rate all over the world is undeniably huge. But, the bigger problem that professionals - Tips and Techniques on Finding a Job Quickly
There are three ways on how you can get employed at the soonest possible time- that would be, knowin - Securing Your Lifetime Starts Now
If by the time you're 30 and you still don't know what you want to do with your life, it should alre - Occupational Therapy Jobs For a Career in Nursing
Occupational therapy jobs are undertaken by individuals who are willing to engage their skills in he
Most viewed articles in this category:
- Hollow Eyes Are Not Dark Circles Under The Eyes
Many people of all ages complain of dark circles under their eyes. The phrase "dark circles under th - Career As A Hairstylist
Hairdressing is an art that involves arranging hair for aesthetic purposes, participation in formal - Life After West Point Military School
West Point exists to educate and train Cadets who are commissioned as Officers in the US Army upon G - Work Experience In Fashion - How To Get A Great Opportunity In Fashion Work
Work experience in fashion can be one of the most challenging positions to find. It's a simple equa - Tips for Job Hunting in Today's Market
In order to be competitive in today's job market, you must stand apart from the competition. Just h - Who are the EMTs
You'll find them at Denny's. At least I always do. Denny's, Coco's, Perkin's; any all-night restaura - Hiring A New Assistant?
More and more small businesses and even larger companies are turning to virtual office assista - You Too Can Start an Independent Record Label
It's no big secret, the trick of how to start a record label definitely involves some cash and most - Increased Salary with a Medical Degree: Consider the Options
Physicians are probably one of the highest paid professionals in the world. They make a lot of money - 5 Steps to Becoming a Virtual Assistant
Here are 5 steps that I went through in becoming a virtual assistant. These aren’t official by
