Best Websites
Since
1998 BestWebsites.com.my features thousands of best websites
in many
categories of interest with descriptions/reviews given by leading
publications and webmasters.
27-03-2006
Rules Tighten for Student
Loan Consolidation with Department of Education Announcement
Last week The Department of Education announced that as of
March 31, 2006 many students will no longer have the right to choose
the lender they wish to consolidate with. An estimated 40% of students
eligible for consolidation may be affected by this regulation.
San Diego, CA (PRWEB) March 27, 2006 -- Last week The Department of
Education announced that as of March 31, 2006
many students will no longer have the right to choose the lender they
wish to consolidate with. An estimated 40% of students eligible for
consolidation may be affected by this regulation.
The Department of Education’s announcement specifically restricts all
Two-Step Student Loan Consolidations that are not completed by the
deadline. “Unfortunately this is a troubling regulation for students
with loans. Students will no longer have the right to shop for the
best incentives which may ultimately cost them hundreds to thousands
of dollars” said Mary Montiel at Collegiatefunding.com.
The Department also included in its announcement that it will no
longer allow the re-consolidation of Direct Loans after July 1, 2006.
In the past a student who had consolidated with Direct Loans could
shop for a better incentive and reconsolidate the loan. The Department
will now force students to go back to school and take out a new loan
to be eligible for this type of consolidation.
This comes on the heals of the Deficit Reduction Act that was passed
earlier this year. The Deficit Reduction Act raises student loan rates
to a 6.8% fixed rate on all new loans and no longer allows in school
consolidations after July 1, 2006.
“It is a sad day for students. We are expecting interest rates to
increase to the mid 6% range or even higher on July 1, 2006 compared
to 4.7% today,” said Mary Montiel. “Now without the ability to shop
for additional rate reductions of sometimes as much as 1¼%, it is the
students who will suffer while in repayment”
Students are urged to consolidate by March 29th, making sure to
consolidate with a company who offers e-signature and a good incentive
program. This will ensure they meet the March 31st deadline.
For more information on consolidating your student loans visit
http://www.collegiatefunding.com or call 1-800-918-7587.
Collegiatefunding.com is a free service offering student loan
consolidation and financial aid to all college students and their
parents.
Copyright ©
2006 BestWebsites.com.my. All rights reserved. |