Student Loans : News, Updates and Blog Posts

Quincy, MA (PRWEB) May 31, 2006 — With the final auction of the 91-day Treasury Bill on May 30, 2006, federal student loan rates have been set for the new academic year beginning July 1, 2006. The new rates for federal student loans are:

Stafford Loans for students in school: 6.543%, up from 4.70%
Stafford Loans for graduates in repayment: 7.143%, up from 5.30%
Parent Loans for Undergraduate Students (PLUS): 7.943%, up from 6.10%

These new federal loan rates take effect for existing federal student loans as of July 1, 2006. Borrowers who want to lock in the current rates, which are much lower than the new rates, can do so by consolidating their student loans up until June 30.

“With all of the recent changes in legislation surrounding the federal loan program, there may be some confusion about who this rate increase will affect,” states Jonathan Rudy, Director of Loan Consolidation at www.StudentLoanConsolidator.com. “It comes down to this – if you’re a student or a parent with federal student loans, and you don’t consolidate before June 30, your interest rates are going to increase and you’ll end up paying thousands of dollars more in interest.”

The savings borrowers can expect by consolidating are significant. The average college graduate with $30,000 in federal student loans who consolidates before the deadline, will save more than $6,300 in unnecessary interest – savings that will only occur if borrowers consolidate before June 30.

Should graduates consolidate their student loans? “Yes, absolutely – there’s no question about it,” states Rudy. “With no fees, no credit checks, and cash building borrower benefits, there’s no reason not to consolidate right away. Most importantly, since the new rates are nearly 35% higher, and the time to consolidate at today’s lower rates is nearly gone, borrowers need to act quickly and consolidate their loans today.” Said Rudy.

“When federal student loan rates increased last year, the influx of applications caused major industry wide processing delays – We can’t stress enough how little time is left to apply,” urges Mr. Rudy. “Very often graduates wait until the last minute to file their paperwork and by then, they may not be able to insulate themselves from the rate increase. The earlier you apply, the better off you’ll be.”

Students wishing to file a consolidation application should do so at http://www.StudentLoanConsolidator.com immediately or call (877) 328-1565.

Hello to all of my faithful readers! Today, a message from our top financial counselor, Christoper Penn from The Financial Aid Podcast

You’ve read the importance of consolidating your federal student loans – on CNN’s Money, in the Wall Street Journal, even in letters from senators and congressmen to their constituents. You know that consolidating your federal student loans can cut your monthly payments up to 60%, lock in today’s low rates before they jump by nearly 200 basis points (2%) this summer, and simplify your monthly bills, but you may not have known that on July 1, 2006, you may lose your chance to consolidate with the best benefits possible.

Call us now, toll-free, at 877-328-1565 or go to www.TodayISave.com to get started!

On July 1, 2006, federal student loan interest rates are anticipated to jump up by 2%, which may not sound like a lot, but for a graduate with $24,000 in federal student loans, 2% could end up costing them $5,100 more in interest – interest that you don’t need to pay! Can you think of something better to do with $5,100 than give it to the government?

Time is running out. Consolidate your federal student loans now – today – to ensure that your paperwork is being processed well before the deadline. We anticipate a massive rush of students at the 11th hour, and the unfortunate reality is that we may not be able to help all of them in time. Don’t be left behind – file your application today. There are no fees, no credit checks, no cosigners, and no early repayment penalties, so you have nothing to lose and thousands of dollars saved in interest to gain.

Call us now, toll-free, at 877-328-1565 or go to www.TodayISave.com to get started

Tell me what you think – the FAFSA was developed to get a complete financial picture of a family’s situation. But there’s another agency that already does this – the IRS. What if the FAFSA were just a postcard that said:

Your SSN:
Your Parents SSN:
Do you authorize the IRS to release your tax information to the Department of Education: Yes/No
Sign Here:

If it were that simple, would you be more likely to apply for federal financial aid? Would more people get into school?

Call my show’s comment line and let me know what you think! Toll-free: 877-328-1565 x529

Less than 1 week left until the rates on federal student loans are set. For more information, check out: http://www.studentloanconsolidator.com/consolidation/projected-rates.php

If your not sure what your current interest rate is, or whether or not you qualify for federal loan consolidation – give us a call at 877.328.1565 right away. Don’t let a 5 minute call get in the way of saving hundreds each month.

www.studentloanconsolidator.com

Yes that’s right…time is ticking, and the chance to consolidate your federal student loans at this years low interest rate is nearly gone.

As listed before, the estimated interest rate increase:

Stafford loans in grace: 6.7% (up from 4.70%)
Stafford loans in repayment: 7.3% (up from 5.30%)
PLUS loans: 8.10% (up from 6.10%)

While the rate change doesn’t go into affect until July 1st – processing delays are inevitable. If you’re thinking about consolidation, or your not really sure if you can consolidate, call the experts at staffordloanconsolidation.com at 877.328.1565. Our loan counselors will analyze your student loan portfolio, calculate your new monthly payment, and get your application out the door.

So cut your monthly payment by 60%, lock in today’s low interest rate, and secure your finances. Visit www.staffordloanconsolidation.com or call 877.328.1565.

A new Dear Colleague Letter states new changes for FAFSA effective July 1, 2007 from the Department of Education. Included in this letter are the following changes:

+ Income protection allowance (IPA) for dependent students increases to $3,000 from $2,640
+ IPA for independent students moves up to $6,050 from $5,000
+ Asset contribution requirements fall from 35% for dependents to 20%
+ Asset contribution requirements fall from 12% to 7% for independent students

This is important because you are permitted to earn more money beginning this tax year that will not be counted by the FAFSA EFC next year.

I received an email today from one of our consolidation borrowers, and in the email they asked what the biggest benefit of consolidation was? I thought about this question for awhile and came up with a pretty good response that I would like to share with everyone.

First of all, let’s briefly list the benefits of consolidation, and then we can look at how these benefits relate to borrowers throughout their repayment:

Reduced monthly payment up to 60%
Fixed low interest rate, as low as 3.5%
No penalties for early repayment
Additional 1.25% interest rate reductions for borrower benefits
Improved credit score
simplify finances, single monthly payment
No credit checks, fees, or co-signers needed
Interest is income tax deductible

The important factor to remember is that consolidation will help each borrower in a different way. For example, a recent graduate who is breaking into the job market, looking for an apartment, and financing a car, their biggest benefit from consolidation would be the huge monthly savings. Someone who has been working for several years, and has a fairly good income might benefit the most from the lower fixed interest rate, borrower benefit savings, and non-penalty early repayment. They aren’t so much concerned with barley making their monthly payment, as they are about saving the most money possible and paying off their loan quickly. Looking back at our fist example again; they just found a good job, and can contribute more then the monthly payment, plus they’ve made all their payments on-time for 36 months utilizing automatic checking account withdrawl – so now their interest rate is reduced by an additional 1.25%. When it comes time to purchase a house…their credit has been improved some and their overall finances are in better shape.

So consolidation benefits will help borrowers in different ways, at different stages in their repayment. But overall, the benefits of consolidation are all about saving money and making repayment easier.

Not sure how consolidation can help you? Call and speak with one of our consolidation counselors at 877.328.1565, or visit us at www.studentloanconsolidator.com. Call today to find out what benefits will help make your repayment easier.

Approximately 2/3 of student use student loans to pay for college.

From CNN:

As recently as 1990, only 46.2 percent of students at public schools took out loans, averaging just $9,798 in 2004 dollars. Private school debt in 1990 averaged just $15,054.

Call it a reverse dowry: college debt diverts careers and delays or impedes graduates’ plans to get married, buy a home or even to start a family. The effects can last years.

A 22-year old student graduating this year who consolidates their $40,000 loan at 6.125 percent will need to pay $243 a month…until they’re 52. By that time, they will have paid $47,494 in interest alone.

A reverse dowry

“My student loan debt is my biggest source of stress in my life at the moment,” said Steve Desroches, a 2002 graduate from Columbia University’s Graduate School of Journalism. “I live paycheck to paycheck.”

The degree left Desroches, who works for a newspaper on Cape Cod, $50,000 in debt with no savings. He’s unable to buy a needed car or to even think about entering Massachusetts’s “out of control” real estate market.

The repayments were so financially restrictive he briefly considered declaring bankruptcy, until he learned it wouldn’t affect his student loans because they’re federally guaranteed.

“My feelings about my degree now? My graduate education was invaluable [to my career], but it wasn’t worth $50,000, or more accurately, it isn’t worth the debt. My options are definitely limited.”

Christine Moellenberndt of Sacramento, California has given up on the idea of owning a home, at least anytime in the next 10-15 years. She graduated last June from the University of California, Santa Cruz with a degree in anthropology, and moved back in with her mother when she realized not doing so would mean living paycheck to paycheck with no chance of paying down her debts.

“That $675 I could be spending in rent could also be a good chunk of a credit card payment, or a huge payment for my student loans. I see that as a bit of a better investment than living on my own and struggling paycheck to paycheck.”

Moellenberndt says at least half her monthly income working at a state regulatory agency goes to pay off her $18k in federal student loans. And although the debt is daunting, her plans to become a community college professor call for an advanced degree…hiking her debt in the future.

A growing issue for the economy and society

The cumulative effect of such student debt on graduates is unclear, although few would argue that its impact will be positive for the graduates, the economy or society.

“We’ve never done this to a generation of young people before,” said Dr. Heather Boushey, Senior Economist at the progressive Center for Economic and Policy Research. “We’ve never put a generation in their 20s in debt they can’t get out of before they started their work life.”

“The normal approach in any healthy society is to help young married couples get started in life through marital gifts, dowries, and the like,” Allan Carlson of the socially-conservative Howard Center for Family, Religion, and Society said.

“We now burden many young adults with student debt, sometimes massive in nature; the price being paid includes marriages delayed or foregone and fewer children. This is foolish public policy.”

Hot off the wire!

Quincy, MA (PRWEB) May 1, 2006 – StudentLoanConsolidator.com, a service of the Student Loan Network, proudly announces the launch of their new affiliate program, StudentATM. A simple to use, effective program designed to provide big earnings to its members through generated consolidation applications.

The program is currently paying $100 per completed/returned application with no maximum limit of applications or caps on earnings. A simple to use program, members are provided with a unique link that directs their customers to an application form on StudentLoanConsolidator.com. Jonathan Rudy, director of StudentATM sums up the simplicity of the program. “Affiliate members can post the link we provide anywhere they want – in their blogs, email signatures, on their myspace page, or even on personal websites. The more links that are posted, the more borrowers apply, the more money is made – it’s that easy.”

Additionally, Mr. Rudy points out that signing up for StudentATM is a simple one step process. Once a member, StudentATM provides helpful information on the benefits of student loan consolidation, tips and tricks for posting links in high traffic areas, and even marketing promomotions and pre-designed images. “We wanted our program to be informative and easy to use from the very beginning, so our members can focus on getting their program underway without worrying about getting around a huge learning curve.”

StudentATM members can use their personal log-in page to view up-to-date earnings reporting, utilize marketing materials, and even check out how other members are doing. “We’ve been providing helpful savings for borrowers through our consolidation program for years now, it only made sense for us to develop an easy to use affiliate program that would help even more people consolidate, by providing earnings for those who want to help their peers.”

Anyone wishing to get more information about the StudentATM affiliate program should visit http://www.StudentATM.com immediately. Or contact Jonathan Rudy, Director of StudentATM at jrudy@edvisors.com.

StudentATM.com is a division 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, with offices in Quincy, London, England and Jacksonville, Florida. Visit them on the web at http://www.studentloannetwork.com/ for more information.