EdFed, a leading consolidation company, urges students to consolidate their loans before the interest rate increase on July 1.
Because EdFed understands the timeliness and importance of consolidation, our staff of loan specialists is working around the clock—24 hours a day, seven days a week--in order to address concerns, research a student's or graduate's loan history, estimate projected interest rates and savings, and help students and graduates decide whether consolidation is the right choice for them.
EdFed knows that these interest rate hikes will have severe repercussions, including higher levels of debts, for millions of student and graduate borrowers.
EdFed CEO Harrison Barnes said, "In the long run, higher debt may affect a student's or graduate's options regarding a mortgage, credit cards, and parenthood. Simple things like raising children or buying a house may just seem too expensive. Increased financial burdens may keep them from pursuing their dreams and desires."
Barnes continued, "Borrowers must consolidate now, before the July 1 deadline, if they're going to avoid these interest rates."
Due to the passage of the Deficit Reduction Act, which President Bush signed into law in February 2006, funding for student-loan programs will undergo a $12.7 billion cut over the next five years. In an attempt to reduce the federal deficit, Congress is set to increase student loan interest rates by around 2 percent on July 1.
Borrowers who choose to consolidate can lock in a low interest rate for the life of their loans; and EdFed offers an additional 1.25 percent interest rate reduction, giving students and graduates the ability to lock in rates as low as 3.5 percent. This will reduce monthly payments by 60 percent and save thousands of dollars over the life of the student loan.
At EdFed, we are devoted to assisting students in paying for school and managing education debt. Our consolidation services decrease students' monthly and lifetime payment amounts, leaving them financially independent to pursue their dreams.
Additionally, since consolidation converts multiple federal student loans into one loan, it offers many other attractive financing options. Those who consolidate only have to make one single monthly payment and can access a variety of alternative repayment plans that range from 10 to 30 years, including an extended repayment plan for students undergoing financial difficulty.
EdFed allows students and graduates to consolidate student loans that originated under the Federal Family Education Loan Program (FFELP). Because we realize the complexity and burdensome nature of handling student loans, we aim to simplify your loans while presenting you with every money-saving opportunity available. Applying for consolidation through EdFed is easy, convenient, and fast. In fewer than 10 minutes, you can apply via phone with one of their customer service representatives or via internet through their online application.
Current students and graduates are eligible for loan consolidation. For more information regarding student loan consolidation, please contact an EdFed loan specialist by emailing ContactUs@EdFed.com, calling (800) 821-5659, or using the "Live Chat" option at www.EdFed.com.