Student Loan Consolidation Hot Topics

I can see from the comments on the previous post that there remains a lot of confusion about when to consolidate. I will answer the questions to the best of my knowledge.

Given the current run rate of the Treasury bill, it looks as though variable student loan interest rates will most likely be going down significantly on July 1st. The last auction of the T-bill will be on May 31st, when the new rate is set. Is there a chance that the rate could go up? Sure - there is always a chance. But given the current trend, it seems very very unlikely. But don’t worry - since the rate is set on May 31st, you will still have all of June to start your consolidation in the unlikely event that the rate increases.

Anyone that has federal student loans taken out prior to July 1, 2006 and has not yet consolidated these loans will be effected by this rate change. So I advise anyone who is thinking about consolidating now, to wait until May 31st when the new federal rate is set. The new rate information will be posted on this blog, and also on SudentLoanConsolidator.com.

For everyone that has a blend of variable rate federal loans (taken out before July 1, 2006, subject to the decrease) and fixed rate federal loans, you will be able to combine all of these loans together when you consolidate.

I do not advise consolidating federal and private student loans together. Doing so would remove all of the federal benefits, and set all of the loans to a variable rate, which is adjusted quarterly by either the LIBOR or PRIME rate indexes. Because federal loan rates are likely to decrease, consolidating federal loans with private loans would cause a significant rate increase.

In addition, the upcoming rate change WILL NOT affect anyone consolidating their private student loan debt. The rate change being discussed is for federal student loans only. Private student loan rates are based on either the LIBOR or PRIME rate indexes and the borrower and/or co-borrowers credit.

I understand how this process can seem a bit overwhelming. So if anyone has additional questions, please feel free to comment. I will make sure that questions and comments are answered on a more regular basis. Also, stay tuned to for the latest rate information once it becomes available.

Just a friendly reminder to all those 2007 spring graduates, August 1st marks the halfway point in your grace period. For those who don’t know, your grace period is the six months after graduation, before your first student loan payment is due. That’s right - you have to pay those back at some point. While I realize the only thing on everyone’s mind right now is warm sunny beach days and evenings filled with BBQ’s, a few minutes of preparation now could save a bundle of cash in the fall.

If you consolidate your federal student loans during your grace period, you will save an additionally 0.6% on your interest rate. That could translate into thousands of dollars in savings. Plus… you’ll get all of the benefits of consolidation; such as a lower monthly payment, lower interest rate with borrower benefits, and repayment plans designed to fit any budget.

So, if you planned on consolidating your loans in the fall when your repayment begins, take a few minutes right now and apply. Give one of our loan counselors a call – they’ll give you an idea of what your lower monthly payment will be, and how much you can save. Call toll-free (877)328-1565.
And have a great summer!

Over the past month, we have seen a huge increase in the amount of consolidation application requests. Many of these requests are June graduates trying to get their applications submitted before their grace period expires.

If you are currently still in your six-month post-graduation grace period, you can apply for a consolidation and receive additional savings. During this six months, Stafford loans disbursed before July 1, 2006 have a 0.6% lower rate. By consolidating during this period, you are able to lock in this discounted rate. If you wait until your grace period is over your rate will increase by 0.6%. Your application must be signed and received in our office before your grace period ends in order to obtain the additional 0.6% discounted rate. When you fill out your consolidation application, be sure to include your grace period end date, and we will complete your consolidation when your grace period expires.

If you are not sure when your grace period expires, give us a call toll free at 877-328-1565 to speak with a loan counselor.

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The date is rapidly approaching for many recent graduates to begin repaying their student loans. Now is the time to seriously look at the benefits of consolidation and to act soon. Graduates have six months from their graduation date (a period known as the “grace period”) to consolidate their federal student loans at a discounted rate. Graduates who consolidate during their grace period receive a 0.6 percent interest rate reduction, with some students consolidating at an interest rate as low as 6.625 percent. The lowest consolidation rate increases for graduates who miss this important deadline to 7.25 percent.

Once the grace period is expired the borrower will not be eligible for the grace period rate for federal loan consolidation. If you would like to find out when your grace period expires please call 877.329.1565 - or visit www.studentloanconsolidator.com.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

Hot off the wire…

As spring 2006 college graduates approach the end of their six month federal student loan grace period, borrowers will be faced with repaying their federal student loans at a time when student loan debt has never been greater. Student loan consolidation holds out the promise for recent graduates to lower their monthly payments up to 60% and reap additional interest rate savings - but only if they act quickly, before their grace periods end.

Federal student loan consolidation is a refinancing program that combines multiple federal student loans into a single loan, fixes the variable interest rate, and lowers the monthly payment. Graduates can consolidate their federal student loans at any time after graduation, but the first six months after graduation gives graduates an additional discount of 0.6% off their interest rate. Consolidation has grown significantly over the past 12 months due to July 1st interest rate changes and legislative changes written to permit borrowers to consolidate with any lender they choose.

Jonathan Rudy, director of loan consolidation services at http://www.StudentLoanConsolidator.com recommends that 2006 graduates file their consolidation application immediately. “All 2006 spring graduates who have not consolidated their loans yet need to submit an application right away. The 0.6% interest rate discount for consolidating during their grace period translates into huge savings throughout the term of repayment. In one recent example, a student was able to save an additional $49 per month, which oer the life of their loan translated into an additional $17,640 in savings.” [1]

Mr. Rudy also states that college graduates are faced with a staggering financial burden after graduation. “With post-grad living expenses including moving costs, rent and car payments, student loan consolidation makes great financial sense for anyone trying to build a manageable budget. Having multiple large student loan payments each month only adds to the growing pile of bills – consolidation can cut monthly student loan payments in half.”

Christopher Penn, host of the popular Financial Aid Podcast internet radio show, commented, “Federal student loan consolidation with StudentLoanConsolidator.com is the ideal tool for managing your student loan payments. You need a couple of years after graduation to get on your feet financially, and being able to cut your loan payments in half while you’re getting started can be a huge advantage. Once you’re on your feet, you can make additional or larger payments with no early repayment penalties.”

Mr. Rudy encourages all student loan borrowers, including parents with federal PLUS loans, to file a free application for consolidation right away. Students and parents can visit http://www.StudentLoanConsolidator.com or call toll free (877) 328-1565 to learn more and apply.

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StudentLoanConsolidator.com is a service of the Student Loan Network, a multi-national education services company offering students options for managing the entire education life cycle, from getting into their college of choice to financing their education and beyond. The Student Loan Network is based in Quincy, Massachusetts. Visit them on the web at http://www.StudentLoanNetwork.com for more information.

[1] A student with $115,000 in federal student loans compared consolidation at 6.54% and 7.14% over a 30 year term.

I know I know… I haven’t posted in a few days - My deepest apologies to all my faithful readers. We have just been slammed busy at the StudentLoanNetwork. Students are graduating, grace periods are ending… So needless to say, lots of inquires have been coming in about consolidation. YES you can consolidate during your grace period. YES your interest rate will be locked in .6% lower if you do.
Don’t hesitate - give us a call at 877.328.1565 or drop by www.studentloanconsolidator.com

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If you graduated this spring, there is a good chance that your grace period has almost expired. Consolidating during your grace period will lock in the lower interest rate of 6.54%. That’s .6% less than the repayment interest rate of 7.14%. If that isn’t enough incentive, there’s always the fact that once your grace period is over, you have to start repaying your loans. Consolidation may not eliminate your monthly payment, but it certainly makes it more manageable - nearly 60% lower.

So consolidate today and simplify your finances with one monthly payment, put money back in your pocket with cash saving borrower benefits, and cut your monthly payment up to 60%. And if you’re still in your grace period - get all this plus the lower interest rate of 6.54%.

StudentLoanConsolidator.com StudentATM.com Gradloans.com ActEducationLoans.com FinancialAidPodcast.com

But you may still qualify for last years lower rates!

I know, it’s been awhile since I’ve written…to all my faithful readers, I apologize for my absence. I was busy taking in all of your consolidation applications before the deadline.

But here’s the deal, you may still qualify for last years lower rates if you requested an application before the deadline occurred on June 30th. How so you ask? The department of education in all fairness announced that any borrower with a substantially complete application prior to the deadline, could receive last years lower rates. Applying on our website or over the phone with one of our loan counselors is considered a substantially complete application.

So give us a call and find out if you already applied. And don’t forget, we have an esignature option that is safe, secure, and super quick to complete. Call 877.328.1565 or check out StudentLoanConsolidator.com right away!

Hey everyone… a quick note before the work week officially begins at the Student Loan Network. A HUGE thank you to everyone at the Student Loan Network who burned the candle at both ends and in the middle to get as much done prior to July 1 as possible - and a bigger thank you to everyone who helped to spread the word about the interest rate change.

As the next couple of weeks unfold, we’ll get caught up on all the loan applications, but we promise you this - if you are qualified for consolidation and applied before the July 1 deadline, you WILL get the lower rates. We won’t forget about you.

Happy Independence Day. Hopefully we’ll be celebrating your independence from high monthly payments real soon.

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Press Release, hot of the wire…

Reserve Your Place for Student Loan Consolidation Before July 1 Interest Rate Hike

Quincy, MA (PRWEB) June 21, 2006 — On June 15, 2006, President Bush signed into law HR 4939, an emergency budget bill that included a provision for students and graduates with student loans to be able to consolidate their federal student loans with the company of their choice. This freedom of choice comes at a critical time, as graduates face a near-record average interest rate increase of 35% on student loans beginning July 1, 2006. Acting quickly can save graduates hundreds or even thousands of dollars over the life of a loan.

Christopher Penn, host of the popular Financial Aid Podcast internet radio show, commented, “This legislative change couldn’t have come at a better time than now. By opening up the student loan industry to more competition, borrowers - college graduates - will win with access to better benefits, better customer service, and a chance to work with the company of their choice. However, graduates need to get in the game as soon as possible - rates are going up in only a couple of weeks, and once today’s rates are gone, they’re gone forever.”

Jonathan Rudy, director of loan consolidation services at StudentLoanConsolidator.com, recommends that graduates electronically sign their applications. He recently commented, “eSignature is a secure and fast way to sign up for and complete a federal student loan consolidation online. Why wait for a paper application to get mailed out to you? Using eSignature can reduce the consolidation process by at least 10 days, further ensuring protection from the upcoming rate increase.”

“If a graduate’s application arrives at the office at 12:01 AM on July 1, unfortunately there’s nothing we can do to help them keep today’s low rates. This is why eSignature is so important - you can instantly return your application, and by doing it electronically, you’ll be well ahead of the deadline. Some graduates have applied for and signed their applications in as little as 15 minutes,” said Rudy.

Mr. Rudy also recommends, “You can file an application request now, even if you’re not sure you want to consolidate your federal student loans. Having an application on file will ensure that you receive this year’s lower rates - so if you’re unsure whether or not to consolidate, file a free application request and your ’seat at the table’ will be reserved if you change your mind, even after July 1.”

Students and graduates who are interested in consolidating their federal student loans using eSignature are encouraged to visit www.StudentLoanConsolidator.com or call the Student Loan Network toll-free at (877) 328-1565.