PRTODAY / NewswireToday Free press release distribution service network

Written by / Agency / Source: National Financial Awareness Network, Inc.

Check Ads Availability|e-mail Article


Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!

Financial Literacy Company Warns Students of Loan Rate Hikes - Interest rates for federally guaranteed student loans will increase on July 1, but students and graduates can save money by locking in the current low rate through student loan consolidation
Financial Literacy Company Warns Students of Loan Rate Hikes

 

NewswireToday - /newswire/ - Columbia, MD, United States, 2006/06/12 - Interest rates for federally guaranteed student loans will increase on July 1, but students and graduates can save money by locking in the current low rate through student loan consolidation.

   
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Financial/Legal/Venture Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

The National Financial Awareness Network, Inc., a Maryland-based financial literacy company, is urging consumers to consolidate their federal student loans to lock in a lower rate before interest rates increase 40 percent on July 1, 2006.

Each July, lenders will raise interest rates on federal education loans, such as Stafford and PLUS (Parent Loans for Undergraduate Students) loans, taken out prior to July 1, 2006. The rate increases are mandated by the Department of Education. Under current law, interest rate increases for federal student loans cannot exceed 8.25 percent.

Students currently repaying their loans could receive a rate as low as 5.375 percent by consolidating. Some lenders offer incentives that further reduce the fixed rate such as additional percentage reductions after several years of on-time payments or for automatic withdrawals.

Consolidation extends the term of the loan up to as much as 30 years, depending on the loan amount. Students who choose not to consolidate must pay their loans off in 10 years and the rate remains variable, rising as high as 8.25 percent. While paying off the loan in ten years means less time for interest to accrue on student loan balances, the rate is not fixed unless the loans are consolidated. This means that the higher, variable interest rates could add up -- even for shorter loan periods.

“From our research and our discussions with student loan consolidation experts, the best plan of action for consumers with student loans is to lock in low interest rates now and then setup a repayment plan to fully pay off the loan as soon as possible,” said John Janney, president of the NFAN. “The goal of locking in a low interest rate is to save money, and quicker repayment means spending less in interest charges.”

As a result of the new rates, students with a debt of $20,000 could pay $4,500 extra over the life of a loan in a 20-year period, according to Mary Montiel of Collegiate Funding in San Diego. Students will have a loan interest rate of 7 percent unless they consolidate before the July 1 deadline and lock in a fixed rate as low as 4.75 percent.

“Students who want to pay their loans off as quickly as possible should still consolidate prior to the July 1 deadline and then pay more than their minimum monthly payment,” said Montiel. “There is no early repayment penalty, so locking in the low rate now can help save them a lot of money in the long run.”

Graduates with $20,000 in loans, an average amount for a four-year student, will pay $136 per month for a total of $32,681 if they consolidate today, $157 per month for a total of $37,575 if they consolidate after July 1st and $234 per month for a total of $28,000 if they do not consolidate at all at current variable rates. If a student consolidates today and pays in 10 years, the total repayment is $25,167.

About NFAN

The National Financial Awareness Network, Inc. (nfan.com), is a financial literacy company based in Columbia, Maryland, that offers educational products and services to debt relief agencies, their clients and the general public.

 
 
Your Banner Ad Here instead - Showing along with ALL Articles covering Financial/Legal/Venture Announcements

Replace these Affiliate Programs at ANYTIME! Your banner here within the next hour. Learn How!


 

Written by / Agency / Source: National Financial Awareness Network, Inc.

 
 

Availability: All Metropolitan Area

 

Traffic Booster: [/] Quick Newswire Today Visibility Checker

 

Distribution / Indexing: [+]

 
 
# # #
 
 
  Your Banner Ad showing on ALL
Financial/Legal/Venture articles,
CATCH Visitors via Your Competitors Announcements!


Financial Literacy Company Warns Students of Loan Rate Hikes

Company website links NOT available to basic submissions
It is OK to republish and/or LINK any newswire for any legitimate media purpose as long as you name Newswire Today and LINK as the source.
 
  Is this your article?
Activate ALL web links and social stream by Upgrading to Press Release PREMIUM Plan Now!

|
Publisher Contact: John Janney - NFAN.com 
877-259-6968 jjanney[.]nfan.com
 
Newswire Today - PRZOOM / PRTODAY disclaims any content contained in this article. If you need/wish to contact the company who published the current release, you will need to contact them - NOT us. Issuers of articles are solely responsible for the accuracy of their content. Our complete disclaimer appears here.
IMPORTANT INFORMATION: Issuance, publication or distribution of this press release in certain jurisdictions could be subject to restrictions. The recipient of this press release is responsible for using this press release and the information herein in accordance with the applicable rules and regulations in the particular jurisdiction. This press release does not constitute an offer or an offering to acquire or subscribe for any National Financial Awareness Network, Inc. securities in any jurisdiction including any other companies listed or named in this release.

Financial/Legal/Venture via RSSAdd NewswireToday - PRZOOM Headline News to FeedBurner
Find who RetweetFollow @NewswireTODAY



Are you the owner of this article?, Turn it PREMIUM with your LOGO instead - and make it 3rd party Ads-Free! within the next hour!


Read Latest Articles From National Financial Awareness Network, Inc. / Company Profile


Read Financial/Legal/Venture Most Recent Related Newswires:

FTI Consulting Receives Recognition in the Legal Industry
FinTech Start-ups Disrupt Business Models, Customer Engagement and Financial Services Delivery in Europe Finds Frost & Sullivan
Elite Capital & Co. Limited Signs Deal with ACB Investments Holding
LexisNexis® Business Insight Solutions Expands Risk Management Portfolio with New Risk Media Monitoring Solution
GE to Sell Shares in Hyundai Card Co. to Hyundai Commercial, Affinity Equity Partners and Other Investors
Societe Generale Named Best Trade Finance Provider in Western Europe and Emerging Markets by Global Finance
Frost & Sullivan Sees Strong IPO Momentum on ASX in 2017 - Strengthens Independent Market Research for IPO's team in Australia
LexisNexis Integrates Lexis Search Advantage with Lexis Practice Advisor
LexisNexis Wins Best Search Project of 2016 for Search Term Maps
TRA Hires Grant Livingston As Regional Sales Consultant
FTI Intelligence Adapts Subscription-Based Service
Chinese Language Website of Dubai’s Award-winning Al Rowaad Advocates & Legal Consultants Launched
FTI Consulting Ranked as the Leading Dispute Advisory Provider by ALM Intelligence
ALM’s Legaltech News Shifts Print Strategy
FTI Consulting Bolsters Energy, Power & Products Industry Expertise in Houston and Dallas

Boost Your Social Network
& Crowdfunding Campaigns


LIFETIME SOCIAL MEDIA WALL
NewswireToday Celebrates 10 Years in Business


PREMIUM Members


Visit  NAKIVO, Inc.

Visit  BizJobs.com





 
  ©2017 Newswire Today — Limelon Advertising, Co.
Home | About | Advertise/Pricing | Contact | Investors | Privacy/TOS | Sitemap | FRANCAIS
newswire, PR free press releases distribution service magazines engine news alert newsroom press room breaking news public relations articles company news alerts newswiredistribution ezine bizentrepreneur biznewstoday digital business report market search pr firms agencies reports distri-bution today investor relation successful internet entrepreneurs newswire distribution prtoday.com freenewswiredistribution asianewstoday bizwiretoday USA pr UK today - NOT affiliated with PRNewswire as we declined their partnership offer in 2013
 
PRTODAY & NewswireTODAY are NOT affiliated with USA TODAY (usatoday.com)