There roughly are seven weeks remaining until interest rates on student loans are expected to greatly increase and rules and regulations will change. College and graduate students alike will feel a major pinch unless they now take action to consolidate their student loans.

Students throughout the country will feel considerable negative effects due to the passing Feb. 8 of the Deficit Reduction Act of 2005, S. 1932. Although many entities are finding fault with the legislation and others are seeking to challenge the bill, interest rates on student loans are poised to skyrocket on July 1.

Federal programs such as Medicare and Medicaid were cut with the passing of the Deficit Reduction Act. However, the federal student loan program took the deepest cuts, totaling more than $12 billion, leaving the nation’s students, parents and student loan companies outraged.

College More Expensive Than Ever

It is highly probable that students will face paying thousands more for their student loans because of the passing of the Deficit Reduction Act. Working-class and middle-class families that already have difficulty paying for higher education will be hit hardest. Tuition at universities and colleges throughout the country has been on the rise while the availability for student grants has decreased, making a college education less attainable.

Students who have federal loans, including PLUS and Stafford loans, can help ease their situations through student loan consolidation. By consolidating federal student loans before July 1 students easily can lock in a lower interest rate for the life of the loan. Through consolidation, students do not have to worry about a variety of monthly bills, as the program combines all of a student’s loans into one monthly payment. In addition, with student loan consolidation students can save as much as 60 percent, which can add up to a savings of thousands in the long run.

As the nation strives to be more globally competitive, the cost of college tuition is increasing. As costs increase and negative changes in the federal student loan program take hold, more and more students and families find it is more difficult to attend college. The rising cost of living is no help to graduates who find it difficult to pay back their student loans.

Student Loan Consolidation Can Save the Day

Student loan consolidation can be a big help to those students and graduates already weighed down under the heavy burden of college debt. However, with the looming July 1 rate increase scheduled to take effect, students should take action and consolidate their student loans before the deadline.

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 as easy as possible. Learn more about student loans at http://www.nextstudent.com/.

Stay Current with our Student Loan Articles

NextStudent is proud to annouce that we now provide newsfeeds for our student loan articles and for NextPath, our free financial aid newsletter. You can use the RSS feed below to add this to your "MyYahoo" account, your blogs, newstickers, and other channels that accept distributable content.

View the original article here

If you’re a former student or college parent with outstanding federal grad school or student loans, you may be able to get up to 20 more years to repay simply by consolidating your federal parent or student loans with the federal student loan consolidation program.

Get More Time to Repay Your Parent and Student Loans

Federal PLUS loans (for parents of undergraduates) and Stafford student loans are issued with standard repayment terms of 10 years. When you consolidate these federal parent and student loans into a student loan consolidation, you may be able to get up to 30 years to repay.

The repayment term on your student loan consolidation will depend on the total outstanding balance of your education debt:

So if you have $60,000 or more in outstanding education debt when you consolidate your federal college loans, you’ll have 30 years to pay back the student loans you consolidate.

There are no prepayment penalties with the student loan consolidation program, so even though you can get more time to repay your federal parent and student loans by consolidating, you won’t be assessed any additional fees for choosing to pay more than the minimum each month or for paying off your student loan consolidation early.

Cut Your Monthly Student Loan Payments by up to 42%

With more time to repay, the amount you have to pay each month will typically go down. In fact, when you consolidate, you may be able to cut your monthly student loan payments by up to 42%!

Here’s an example: Your estimated monthly payments on a $100,000 NextStudent Federal Consolidation Loan fixed at 7.25% and repaid over an extended term of 30 years are $682.

Compare that $682 consolidated monthly payment to estimated monthly payments of $1,172 on $100,000 worth of unconsolidated Federal Stafford Loans issued at 7.22% and repaid over 10 years.

That’s a 42% reduction in your monthly payment amount — just by consolidating your federal student loans.*

Lock In Your Student Loan Payments With a Fixed Rate

Although federal PLUS loans and Stafford loans are currently issued at fixed interest rates, PLUS and Stafford loans issued prior to July 1, 2006, are variable-rate student loans. The interest rate on these college loans adjusts every year on July 1, which means that when interest rates go up, your monthly payments on these college loans may also go up.

Student loan consolidation replaces your variable-rate college loans with a fixed-rate consolidation loan. When you consolidate, you won’t ever have to worry about rate increases and rising payments.

Simplify Your Student Loan Repayment

With the federal student loan consolidation program, you can bundle all your eligible federal parent or student loans into a single fixed-rate consolidation loan with just one monthly bill, one lender, and one monthly payment that’s fixed for the life of your consolidation loan.

No more hassle of multiple bills, multiple due dates, and multiple monthly payments to multiple lenders.

Fast, Easy, and FREE

You can apply for your student loan consolidation in minutes. Just visit us online or give us a quick phone call. It’s fast, easy, and free. And there are no credit checks, so you don’t need to worry about finding a co-signer.

NO application feesNO processing feesNO credit checks or co-signers requiredNO prepayment penalties

Consolidate Your Private Student Loans

If you have private student loans in addition to (or instead of) your federal student loans, you won’t be able to consolidate your private student loans with the federal student loan consolidation program. But you may be eligible to consolidate your private student loans separately with the new NextStudent Private Student Loan Consolidation, which offers the same convenience of a single consolidated loan and extended repayment terms for your private student loans.

*Your actual payment reduction may vary and will depend on the terms of the loans you’re consolidating.

Stay Current with our Student Loan Articles

NextStudent is proud to annouce that we now provide newsfeeds for our student loan articles and for NextPath, our free financial aid newsletter. You can use the RSS feed below to add this to your "MyYahoo" account, your blogs, newstickers, and other channels that accept distributable content.

View the original article here

If you’re a graduate or college parent with outstanding federal college loans, you may be able to lower your monthly student loan payments by up to 42% simply by consolidating your federal parent or student loans.
When you consolidate your eligible federal college loans, you may be able to extend your repayment term from the standard 10 years to up to 30 years. With more time to repay, the amount you have to pay each month will typically be smaller.
Here’s an example: Your estimated monthly payments on a $75,000 NextStudent Federal Consolidation Loan fixed at 7.25% and repaid over an extended term of 30 years are $512.
Compare that $512 to estimated monthly payments of $879 on a $75,000 Federal Stafford Loan issued at 7.22% and repaid over 10 years.
That’s a 41.8% reduction in your monthly payment amount — just by consolidating your federal student loans.*
Smart Borrowing With Student Loan Consolidation
When you consolidate your eligible federal parent or student loans with the federal student loan consolidation program, you could qualify for all the borrower benefits that come with a Student Federal loan consolidation:
No credit checks or co-signers required Fixed interest ratesLower monthly payments*Longer repayment termsOne payment for multiple student loansDeferred payments†
Lock In Your Student Loan Payments With a Fixed Rate
Although federal PLUS loans and Stafford loans are currently issued at fixed interest rates, PLUS and Stafford loans issued prior to July 1, 2006, are variable-rate student loans. The interest rate on these college loans adjusts every year on July 1.
If you’re a PLUS or Stafford borrower with one of these variable-rate student loans, your monthly payment amount could fluctuate from year to year, depending on your adjusted rate. When interest rates rise, your monthly student loan payments may also go up.
Student loan consolidation replaces your variable-rate student loans with a fixed-rate consolidation loan and puts an end to rate increases and rising payments.
Make Your Student Loan Repayment Easier to Manage
If you have multiple college loans in repayment, say goodbye to the hassle of multiple bills, multiple due dates, and multiple monthly payments to multiple lenders.
With the federal student loan consolidation program, you can bundle all your eligible federal parent or student loans into a single fixed-rate consolidation loan with just one monthly bill, one lender, and one monthly payment that’s fixed for the life of your loan.
Apply FREE to Consolidate Your Student Loans
NO feesNO credit checksNO co-signers requiredNO prepayment penalties
NextStudent offers a student loan consolidation program with no application fees, no processing fees, and no credit checks, so you don’t need to worry about having to find a co-signer.
There are also no prepayment penalties. When you consolidate your federal parent or student loans with NextStudent, you’ll never be charged extra for paying more than the minimum each month or for paying off your NextStudent consolidation loan early.
You can apply for your NextStudent Federal Consolidation Loan in minutes. Just visit us online or give us a quick phone call. It’s fast, easy, and free.
Consolidating Your Private Student Loans
If you have private student loans in addition to (or instead of) your federal student loans, you won’t be able to consolidate your private student loans with our federal student loan consolidation program. But if you’re looking for the same convenience of a single consolidated loan for your private student loans, you may be eligible to consolidate your private student loans separately with a NextStudent Private Consolidation Loan.
*Your actual payment reduction may vary and will depend on the terms of the loans you’re consolidating.
†You may be able to temporarily postpone making payments on your consolidation loan if you’re unemployed or experiencing financial hardship, if you’re back in school at least half time, if you’re in the military and have been deployed, or if you’re on active duty or serving in the National Guard during war or other national emergency. Most deferments are not automatic. Contact your lender.