It's been pretty exciting over the last few days. A congressional bill was pushed through congress early Thursday, and sent to the President for signature - a bill that in part will provide more consolidation options for federal student loan borrowers.
Before this law was passed, any student loan borrower with loans from only one lender, was allowed to consolidate with only that lender. This provided zero room for competition. While not every borrower falls into this category, there was a fairly large cross section of borrowers who could not take advantage of the numerous competitive consolidation programs available. Of course the lenders knew their borrowers couldn't consolidate elsewhere, and offered only minimal money saving borrower benefit packages. But now that's all changed!
Borrowers with only one lender can now branch out and consolidate with any company they choose (hopefully StudentLoanConsolidator.com). One thing they'll find when venturing away from their current lenders are greater savings through borrower benefit programs. For example, borrowers can reduce their interest rate by up to .5% if they sign up for automatic checking account withdrawal, and 1% will be reduced if payments are made on-time for 24 months. These benefits account four thousands of dollars in savings that are not readily offered through their current lenders.
In summary, now is a great time for anyone who has federal loans to apply for a consolidation. If you remember from my previous posts, interest rates are set to increase by 35% on July 1, 2006. So don't get stuck with a higher rate, call the experts at 877.328.1565 or visit www.StudentLoanConsolidator.com and use our fast and secure eSignature progam - the quickest way to get started.