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 loans by consolidating with FFELP. These would be the savings lost if the current legislation becomes law.

Student Loan Consolidation Locks In Interest Rates

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. NextStudents 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.

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.

What About Your College Loan Consolidation, Now That You Are A College Graduate?
Now that you have graduated from college, one of the most nagging prioritises for you is to settle your student days loans, whether private or Federal college loan. So how nice would you feel to note that you have a constitutional right to lawfully r...

Graduate PLUS Loan
Federal Education Services, a federal student loan funding company, offers a Graduate PLUS Loan Program that extends directly to graduate and professional students the same benefits that traditional PLUS loans extend to the parents of undergraduate s...

Applying for Bank of America Student Loans
Many college students are finding that they have many academic funding options ranging from federal loans to private loans. Each has its own advantages and benefits that set them apart from other financing institutions. If you do not know yet, Bank o...

Consolidate Federal Student Loans
When the need for a student loan arises due to the extreme financial challenges in your college years, fear not. Do not be too hard on yourself for incurring those loans. Even if you happen to acquire several student loans, there is no need to panic ...

Education Loan Consolidation - A Primer
If you have become weighed down by having to scrape together the money to make payments on student loans several times a month, you may have an alternative which will not only simplify your life; it may save you a considerable amount in interest paym...

Handling Student Loan Debt
Eliminating Student Loan DebtIdeas to Getting Rid of Debt from Your Student LoanCollege is very costly. After you graduate, the pressure to pay back your student loan can be a tremendous burden. If you are living hand-to-mouth and tired of it, here i...

Federal Consolidation Student Loan - For A Trouble-Free Student Life
To make student life a trouble-free phase with only education as the main concern rather than monetary problems, there are various student loans available these days that are supported by the federal government. The federal government student loan co...

Federal or Private Student Loan?
If you are going to graduate school you have many things to consider besides studying for the GRE and choosing the location and area of study that will probably determine the remainder of your life. You additionally have to make sure that you do not...

College Loan
Do you really need a college loan? In recent years, all undergraduate and graduate courses have become highly expensive. Thus, they are out of reach for the common man. Students, who aspire to get higher education, have to face persistent problems. T...

The Best Student Loans?
The best student loans around are really not that hard to find. In fact, with so much competition for the student loan market, there are even some pretty good private student loan deals floating around. Even so, the best student loans available conti...