student loan consolidation incentive

Students Rush to Consolidate Before Rates Increase

"We have seen an increase in student loan consolidation activity and we anticipate a rush between now and midnight June 30th," said Mari Mann-Silva, vice-president of Financial Operations of the not-for-profit Council for South Texas Economic Progress (COSTEP). "Loan consolidation incentives along with the July 1, 2006 rate increase are driving the market," Mann-Silva added. "COSTEP offers incentive plans based on loan amounts. The following is a recap of those incentives: Student loan amounts of $12,500 or greater will receive a 1% interest rate reduction at the time of consolidation and an additional 1% interest rate reduction after 36 on time payments; loan amounts that are between $5,000 and $12,499.99 will receive a 1% interest rate reduction after 36 on time payments; all student loans are eligible to receive a .25% incentive for participating with the SUREPAY(SM) program."

"The end result is that many students will be paying thousands of dollars more in interest rates unless they consolidate now," said Patricia Beard, president of COSTEP.

More student loan consolidation incentive info

Students puzzled as loan rates rise

Regardless of where you borrow money for college, lenders say there are points every customer should understand. Here are five:

1. CHECK THE INCENTIVES.

Loans with identical rates can cost much different amounts, depending on incentives such as rate reductions for not missing payments.

2. BEWARE OF NO-FEE OFFERS.

All student-loan consolidations are available without fees.

3. "LOWER" CAN BE COSTLIER.

A lower rate does not always mean a cheaper loan if consolidation means you will pay those smaller monthly payments for a much longer period.

4. DO SOME RESEARCH.

Many sites offer financial aid information. Here are some of the more popular: www.fafsa.ed.gov; www.finaid.org; www.cfnc.org; www.salliemae.com

5. SHOP AROUND.

You should find plenty of lenders who do not require a credit check, do not have prepayment penalties and will answer any questions.

More student loan consolidation incentive info

student loan consolidation incentive Link Partners and Resources