STUDENT CONSOLIDATION LOAN

PRIVATE STUDENT LOAN VS FEDERAL STUDENT LOAN

2009-12-03T01:40:00.000-08:00

Unsubsidized college student loan: no interest free period and you will pay the interest with principal amount, after completion of education.

Not all students qualify for student loans federal government. Where students are unable to borrow federalstudent, there is another type of student loan known as private student loans. Many lenders offer private student loans and interest rates vary considerably.

The private student loans also known as student loans or personal loans to his replacement will help pay tuition fees, hostel rent, stationery and other expenses, while competitive interest rates that credit cards. However, private student loans should be used when there is no other choice left. You must be very cautious while borrowing money from the lender, you pay interest.

Qualification for a private student loan depends on credit criteria established by the lender. The credit criteria differs mainly private student loans if the borrower is a parent or student.

Some of the factors that determine eligibility for private student loan.

1) Your credit report2) Your parents credit report3) Crime problems4) loads5 excessive indebtedness) The deposit will be an advantage for a private student loan, because the primary borrower does not pay, that responsibility falls to the surety.

Before applying for a private student loan, you should study the offer to their local financial institutions. Then compare this search with the offers made by lenders online for students. Only then can find the best solution for you.

STUDENT CONSOLIDATION LOAN PROGRAMS TO THE RESCUE

2009-12-03T01:35:00.000-08:00

The world can not afford to attend college. This is especially the purpose of a student loan. It allows people to get a loan to pay the registration fee. A student loan can take many forms, can be a federal loan plus a loan or other types. The idea of a student loan is more than positive, because lack of money is what keeps you and your dreams to share. One or more student loans can bridge the gap that prevents students from getting a proper education.

The fact is that student loans may not be sufficient for all these years of teaching. More information is needed and there is nothing to prevent students from getting them. After finishing school and must begin repaying the loans they can not obtain a loan consolidation for students. Since people have heard of student loans are very few that you can imagine how many people have heard of a consolidation loan for students. So what is a consolidation loan student? It is the means to consolidate your debts. You can take all your loans and combine them into one. The advantages of doing something are many, but some people say that the only thing that can save time. Ultimately, time is money (according to our society), so the more time you could save more money than you earn.

A student loan can be a bargain, but it may be bad. If you're not careful, end of May with more debts than you thought you had. When will you obtain a loan must first be fully informed on the issue of what you've won? T are victims of scams. There are also some things you should look for in a loan so you know you've made the right choice.

First, you need to know that there are two main types of student loans: subsidized and unsubsidized. A loan is subsidized if it is a government loan and is guaranteed by the government.
1. Boasting a subsidized loan means that you got did not have to pay interest on the loan while you attend school. You'll also have a grace period (usually for six long months) after having completed college. Meanwhile, you've won? Pay interest and does not? You must begin repaying the loan.
2. An unsubsidized loan is actually the opposite. If you have this type of loan which means you must pay interest, even if they are in school (of course, another alternative is to let accumulate, which is not very smart).

Some loans can be partially subsidized and unsubsidized part by what have two types of loans into one. This is a good time for a student consolidation loans. You turn on two loans into one to save time and money and get the benefit of a grace period as well.

Another thing you should know about student loans is that not all loans can be consolidated. You must first see if your student loan or loans are eligible for consolidation and then go out and get a loan consolidation for students. All loans and federal loans are eligible for a loan consolidation for students. Another good thing about government is that federal loans can be consolidated by a direct consolidation loan programs. ? What is the consolidation of direct loans or how is it different? you may ask. And through other programs, thanks to a direct loan consolidation program takes all your student loans and make one. To be eligible for direct loan consolidation, you need loans (federal) totaling at least ten thousand U.S. dollars. The advantage is that such a program could reduce payments by up to fifty percent and may extend the loan over a long period of time (ten to thirty years). This means that your monthly payments will be lower and more affordable. It? S easy to apply for this type of program. All you have to do is fill out an application direct loan consolidation and submit. After that, you know if your loans are eligible for consolidation and its application is approved or not.

One of the last things you should be careful when obtaining a student loan is the interest rate and period of time. These two are very close and if you know a little trick could end up saving money by using it. The thing is that the interest rate for student loans is very small (the largest is 8.25%, se puede? T be more important because of the law). So if you get a margin loan over a long period of time that has an interest rate lower, but eventually you will not? T saved money. If you pay the loan in a shorter period, interest will be the same, but will probably end up saving a few dollars.

A student loan is a good idea if you do well. If you are good, others are even better. With the help of loan consolidation student loan consolidation or direct (if you have federal loans made) software that will win situation. Good luck!

Resource box:
You can find more information on programs and student loan consolidation direct loans consolidation on these sites. If you've read about them will make the right decisions about their future.

HOW CONSOLIDATING STUDENT LOANS CAN KEEP YOU OUT OF DEBT

2009-12-03T01:26:00.000-08:00

The loan repayment federal student usually begins after the borrowing student has completed his studies and a grace period after that. However, because students are opting for various reasons federal consolidation of student loans. However, there are certain eligibility criteria to fulfill and a process to follow before they can qualify for debt consolidation loans federal student. Again, it is important to note that such processes and criteria may be reviewed and revised from time to time. Thus, Câ € ™ is important that you check with the competent authority.

According to the Law on Higher Education Reconciliation 2005, the eligibility criteria for the consolidation of student loans for ffel and Direct Stafford loans is a little different. However, borrowers are not eligible for consolidation loans, if it is still under investigation, are not eligible until they leave school or graduate school or entry that is less half the time. For borrowers of PLUS loans, consolidation eligibility begins when total spending has arrived.

Students of private consolidation loans is a student loan interest rates. People with costs of education may apply for federal loan. But he or she must hold U.S. citizenship. Otherwise, the plaintiff must at least be a permanent resident.

In general, the minimum loan is $ 10,000, while the maximum amount that can be borrowed is $ 250,000. The amount also decides the amortization periods. If the loan amount is below $ 40,000, the repayment is set at a maximum of 20 years. However, if you borrow more than $ 40,000, you can enjoy a repayment period of up to 25 years.

This consolidation of student loans is faster to get approved. The consolidation of the interest rate private student loans is the prime rate and is adjusted monthly. The interest rate also depends on credit to the borrower. A good credit history will attract a lower interest rate. As such, the interest rate is variable.

The prime rate is 7.0 percent (at the time of writing). Initially, the margin can vary between 0 percent and 9.90 percent and is adjusted for changes in the rate of margin call.

This consolidation of student loan debt can be used to consolidate all debts relating to education, which also include private loans and student loans federal government. You can consolidate during more than one child. The spouses have the opportunity to consolidate multiple loans into one consolidation loan.

STUDENT CONSOLIDATION LOANS AND THE SUBPRIME CRISIS

2009-11-23T15:04:00.000-08:00

With interest rates rising and loan repayments in the variable rate of students on the rise, you may wonder if a consolidation loan would be a good idea.

At that time, the subprime crisis is causing many problems for many people. Rising interest rates, mortgage payments are rising and many people are no longer able to meet the minimum payments, financial institutions to exclude, expel people, and selling houses for they can.

Spirits are so bad that the owners evicted begin to destroy its own home - pulling toilets, destroying electrical panels, and ruining the walls and accessories that can be taken. It became so bad that companies Prudential, because they now offer incentives for owners expelled leaving home in selling condition.

So what does this mean for you and your student loan? However, financial institutions make their money in a spread of interest rates - the difference between what they pay to the Federal Reserve, and the amount you pay for them. Thus, while the difference is positive, they make money, and everyone is happy.

This means that a new consolidation loan is taken to a new higher interest rate (and rates are rising), and the only way to pay an amount lower net is to change the terms. You will be able to reduce the amount you pay for the extension of time to repay the loan.

Note: Student Loan Consolidation can renew your deferment options if they have already exhausted the possibilities of deferment that begins as student loans federal government. Consolidating student loans can significantly reduce your monthly payment burden. Consolidation allows you to stretch the repayment period of 10 Standard to 30 years, according to the total educational debt. Student loan programs debt consolidation loan to enable a borrower to pay and a consolidation loan create new ones. These programs simply loan repayment by combining several types of student loans federal government into a new loan.

Interest rates for variable student loans are reset on July 1. Over the past two years, rates have risen from the lows, but this year the rate will remain the same. The rate increase of 3.37 percent to 5.26 percent for students and payments.

If you plan not to pay your student loan, be very careful because there are big penalties for not paying a student loan, especially a federal guarantee.

If you repay your loan early, there are ways to avoid prepayment penalties. If you get a loan early education, there are places that can help improve your chances of being accepted.

A loan consolidation is not the best option for everyone, but in many cases, may help reduce your overhead, and give a little money each month to help with things that are important to you now.

CONSOLIDATE DEBT LOANS AND STUDENT CONSOLIDATION LOANS MOST ASKED QUESTIONS

2009-11-23T15:03:00.000-08:00

The first thing you ask yourself when contemplating a loan debt consolidation, which is a consolidation loan debt? The consolidation of some or all of your debts is a process of combining all your debts into one or a loan with a monthly payment and in most cases, low interest rates.

The lender, which consolidate all your debts into one, to pay all your current debts and loans and issue a new loan for you. Now that all your current debts are on a loan, you simply make one monthly payment.

This could be your first question, when you think about consolidation, but anyway, it is entirely up to you. Benefits. Some of the benefits of consolidation that is given to simplify the payment process. No more payment for several months that you stress in May

You can lock a low interest rate, which means more savings for you. You can also extend the payment period of several years depending on your eligibility (though this will increase your total interest payable over the life of the loan). But this is a lender and can also lower your monthly payments.

You can also ask, am I eligible for a consolidated debt? Almost anyone can apply for and obtain loans to consolidate debt. You can also bind at any time you want. Eligibility for consolidation varies from company to company or lender to another, as a basis for approval varies. But it can be easily controlled by the online registration to verify or obtain information on the qualification requirements.

For student loans is a little different.

Some consolidators require at least U.S. $ 10,000.00 Total debt consolidation loans. For school loan consolidation, best place for you is through the loan program the federal government. Here you can get lower interest rates for college and / or loans to school.

What about my monthly payments? How much does it cost me? A new monthly period varies depending on the loan amount and duration of the loan.

The shorter the duration of the loan plus the amount, while the longer is, the less money you pay per month.

For students who do debt consolidation loans generally have flexible payment options, depending on your budget and income. Just a reminder, the faster you pay, the less interest you pay.

How much interest on a loan to consolidate debt? Most lenders have a competitive interest rate, but if you shop, you find the best fares. Do some due diligence and research among the lenders who have the lowest interest rates.

To consolidate the students, it is usually the average interest rate weighted loans consolidated. Some have a variable rate and some have an interest rate locked (based on the current federal rate). Please note that even tenths of a percentage point can mean hundreds of dollars to you to always consider the lowest possible interest rate.
Top of the statement and report on the loans.

The early return of students generally receive a nine-month grace period in the payment of the loans once they have left school and some are 6 months. But the best thing to do is start earlier and be better off. On the deferment of your loan, you can, but if you qualify. If for any reason you are not working, or is confronted with financial and economic difficulties, the U. S. Department of Education pays the interest accrued during the deferment period (applies to loans of consolidation of school).

By deferring the loan that you do not pay, and interest does not accumulate.

To maintain a good credit does not default on loans to consolidate their schools to avoid penalties and subsequent payments. When you know your options, you may have the option to consolidate loans debt.

CHOOSING THE RIGHT STUDENT CONSOLIDATION LOAN COMPANY

2009-11-23T14:58:00.000-08:00

A student loan consolidation is a loan that combines all your student loans by student loan. You might wonder why someone consolidate their loans. Statistically speaking, if the average American to take up to 13 credit cards with a debt of over $ 5,000. If you do the math, with lots of different loans with different companies, that means interest rates will differ.

By consolidating your student loans which combine all their debts to a lender in an interest rate much lower. The reason for lower interest rates is that you get to pay your debt for a longer period, sometimes up to 20 years.

Here you can be very difficult, so it is worthwhile to choose the right company to consolidate student loans before consolidating your debts. One of the most common mistakes that students can do is consolidate your loans with the wrong lender. If you do not read the fine print carefully, you'll end up paying more interest because you do really is to spread your payments over a longer period. If one calculates the interest you pay finish higher than their current loan.

It is therefore very important not to consolidate your student loans with any lender. You need to be very smart in choosing a lender, because it's your money and you do not want to end with a loan of 20 who are not satisfied. Here are some things you can look out for the next time you are looking to consolidate your student loans.

Do not sign anyone to request advance payments of large dimensions. If there is no charge Make sure you know what they are.
To prevent the consolidation of lenders who try to rush to sign with them. You must take your time looking and comparing prices before signing anything.
Get a list of all agreements before signing. Do not take anyone's word or promises. Make sure everything is on paper.
When you find the right consolidation company make sure to consult the Better Business Bureau and see if they have complaints. Worse than a company that was never alone.
You should also check whether the company accredited by the Association of Independent Consumer Credit Counseling Centers. This will ensure that they can consolidate their loans.
Last but not least, ask if you can get a better rate on bonds or other offers or special. Never hurts to ask companies sometimes brushing the functioning of specialties in the following week. So I do not want to lose the opportunity of savings that can get their hands on.

I hope these tips will help you choose the right company to consolidate student loans. All the best in your studies and hope to do well in class.

OPTIONS FOR RESOLVING YOUR DEFAULTED FEDERAL STUDENT LOAN

2009-10-30T23:00:00.000-07:00

et back on track and repay your federal student loan debt. It’s easier than you might think!

If you’ve defaulted on your student loan, then you’re probably aware of some of the serious consequences: you become ineligible for student financial aid, your credit history is damaged, your wages, or your federal and/or state tax refunds or other federal payments may be garnished and you may be sued.

We want to help you get back on track by explaining the options that are available for clearing up your defaulted loan. Why should you bother? Well, you may be returning to school and need financial aid, you may be about to make a major purchase and need to “clean up” your credit report, or you may be questioning whether the debt is even yours.

Cleaning up your credit is going to take some time, but with patience and persistence, you can do it. There are several ways you can repair your defaulted student loan:
• pay your loan balance in full
• make satisfactory repayment arrangements with the holder of your loan
• rehabilitate your loan(s)
• consolidate your loans

Whichever option you choose, make sure you keep copies of all correspondence. You may need them to verify your status as your records are being updated.

This information is provided to you by EdFund. If your loan was guaranteed through EdFund, we can help you resolve a default. Call us toll free at 1.800.367.1589.

If you don’t know who the holder of your loan is, contact the National Student Loan Data System (NSLDS) at www.nslds.ed.gov or 1.800.4FEDAID (TDD 1.800.730.8913).

Option: Pay Your Loan Balance In Full
Paying off your loan in full is the quickest and easiest method for resolving your defaulted loan. When you pay off your debt, you may immediately regain eligibility for most forms of financial aid and your credit report will be amended to reflect your new status, improving your credit score. (However, keep in mind that your credit report may take up to 60 days to reflect a paid-in-full-status.) To exercise this option, contact the holder of your loan to determine the payoff amount, which may include principal (the amount you defaulted on), accrued interest and any collection costs that have been prescribed by law.

Option: Make Satisfactory Repayment Arrangements
If you can’t afford to pay off the loan, making payments is the next best thing. This option re-establishes your eligibility for financial aid benefits after you make a specified number of payments to the holder of any loan(s) in default. In order to regain eligibility for most financial aid programs, you must make six consecutive qualifying payments. A qualifying payment is one that is made:
• voluntarily (not made via federal and/or state payments, wage garnishment, etc.),
• on time (within 15 days of the monthly due date),
• in full (partial payments, unless otherwise agreed upon, don’t qualify).

Note that this option may only be used once to regain eligibility for federal student aid and even though you’ve made payments, the loan is still considered in default status. You must continue to make payments or maintain your repayment agreement with the holder of your loan(s) in order to maintain your eligibility for financial aid.

After you’ve made your sixth payment, you may become immediately eligible for financial aid to cover your current period of enrollment. Also, after the sixth payment, it becomes easier to make the next three payments to qualify you for loan rehabilitation, with still more benefits!

Option: Rehabilitate Your Loan(s)
Thousands of borrowers have rehabilitated their student loans and improved their credit ratings. When you rehabilitate your loan, you regain all the benefits you had on those loans prior to default, including any interest subsidies, if applicable. If you successfully rehabilitate, you may also apply for deferments or forbearances with your new lender. In addition, your credit report will be amended with positive remarks to reflect the new status.

With rehabilitation, after you’ve made nine qualifying payments in 10 consecutive months, your defaulted loan may be purchased (paid off ) by a participating lender, thus retiring the defaulted debt. You’ll then have a new loan and will have up to 10 years to repay (the nine payments you just made count toward your first year). Once you rehabilitate, if the monthly payments become unmanageable, your lender can help you with a variety of repayment options.

In order to qualify for rehabilitation:
• Your loan balance must be over $500 when your loan is sold to the new lender.
• You must make nine qualifying payments in 10 consecutive months.

In addition to those mentioned above, loan rehabilitation has many benefits:
• Eligibility for federal benefits:
o You may now qualify for federal financial aid.
o Your rehabilitated loans may qualify for payment of interest benefits.
o You may qualify for deferments and forbearances.
• Your credit report will be amended, improving your credit score, and you may be able to benefit more from consumer lending programs.

Option: Consolidate Your Loans
Your defaulted loan can also be paid off through a consolidation loan, which enables a borrower with several loans to obtain one loan with one interest rate and one repayment schedule. As with rehabilitation, the defaulted debt is retired (paid off) and a new loan is made. Consolidation loans also have expanded repayment terms, which can make repayment more affordable. You should be aware that extended repayment periods usually mean increased interest costs—you’ll pay more in the long run.

To qualify for a consolidation loan, you must:
• make three consecutive qualifying payments on the defaulted loan, or
• agree to make payments under the income-sensitive repayment option for consolidation under the Federal Family Education Loan Program or income-contingent repayment option for consolidation under the Direct Loan Program.

If you have previously consolidated your student loans, you can only re-consolidate under certain narrow circumstances. Contact a participating lender for more information. More information about consolidation loans can be found on the EdFund Web site at www.edfund.org.

Once you’ve consolidated your defaulted student loans, you’ll enjoy the following benefits:
• The defaulted loans are paid in full, transferring the debt to a loan in good standing.
• Credit remarks on defaulted student loans are updated from “collection account” to “paid collection account,” typically improving your credit score.
• You may immediately regain eligibility for most financial aid programs.
• You may be eligible for deferments on the new consolidation loan.
• Your monthly payments may be reduced if you exercise extended repayment options.

Resolving a dispute
If you feel the default was in error, your first step should be to contact your loan holder and discuss the issue. The holder’s representatives will point out some of your options and guide you through any appeal processes. If your loan was guaranteed through EdFund, contact us toll free at 1.800.367.1590. In addition, some holders of defaulted loans, including EdFund, have a student loan ombudsman who can review your case objectively. The U.S. Department of Education also offers a student financial aid ombudsman, who can assist you if you have a dispute with your student loan or any other financial aid related issue that could not be resolved through established channels.

EdFund – Ombudsman
P.O. BOX 419045
Rancho Cordova, CA 95741-9045
916.526.8024
Fax: 916.526.8518
www.edfund.org

U.S. Department of Education
FSA Ombudsman
830 First Street, NE 4th Floor
Washington, DC 20202-5144
1.877.557.2575
Fax: 202.275.0549
http://fsahelp.ed.gov

Understanding your credit report
Credit reporting and credit scoring are complicated. Lenders and student loan guarantors are required by law to report student loan activity to national credit bureaus so that creditors can make informed lending decisions. How you manage your student loan is reflected on your credit score; it’s vital if you want to acquire future credit and optimum terms.

If you’ve defaulted on your student loan, it’s likely that your credit standing is already damaged. But you can make incremental improvements to it if you take the necessary steps to resolve your debt.

EdFund, like most credit information providers, can only provide updates to the information we report to the credit bureaus. By taking action now and continuing to resolve the debt, you can start down the track of cleaning up the negative marks and repairing the damage to your credit rating.

EdFund reports to the following credit bureaus—Equifax, Experian and Trans Union. For a free copy of your credit report, visit www.annualcreditreport.com; call 877.322.8228; or write to Annual Credit Report Request Service, P.O. Box 105283, Atlanta, GA 30348-5283.

Collection agencies
EdFund’s contracted collection agencies include:

NCO Financial Systems, Inc.
www.ncogroup.com
507 Prudential Road, Horsham PA 19044
1.800.220.2274

OSI
www.osioutsourcing.com
5626 Frantz Road, Dublin oh 43017
1.800.962.5191

Premiere Credit of North America, LLC
www.premierecredit.com
P.O. box 19309, Indianapolis in 46219
1.866.808.7175

Van Ru Credit
www.vanru.com
1350 e. Touhy Ave., Ste 300e, Des Plaines il 60018
1.800.468.2678

Borrower assistance
If your loan was guaranteed through EdFund, we can help you resolve a default. EdFund staff will help you get back on track by finding a repayment option that will work for you.

Call us toll free at 1.800.367.1589.

EDFUND
P.O. BOX 419045
Rancho Cordova, CA 95741-9045
Toll free 877.2EdFund
(877.233.3863)

www.edfund.org

EdFund and its associated graphic and EdWise are registered trademarks of EdFund. All other trademarks are the property of their respective owners. Text also provided by the U.S. Department of Education and used by permission. ©2006 EdFund. All rights reserved.

I-49 30k 7.2006

CONSOLIDATION LOANS REDESIGN OPTIONS AND CONSIDERATIONS

2009-10-27T19:08:00.000-07:00

This report provides background information on Federal Family Education Loan (FFEL) program consolidation loans and discusses options for redesigning consolidation loans. Specifically, it provides background information on the FFEL program and on the role consolidation loans play within the program. It also examines recent concerns voiced over the cost of consolidation loans, and discusses the types of consolidation loan redesign options that are receiving some consideration within the context of the reauthorization of the Higher Education Act (HEA). In brief, the report finds the following:

Consolidation loans were initially introduced to simplify loan repayment and offer borrowers relief in the form of extended repayment. As the consolidation loan interest rate formula has been modified by Congress, consolidation loans have evolved into a refinance benefit as well.
The current consolidation loan interest rate formula affords borrowers the opportunity to secure a fixed rate equal to the weighted average of the rates in effect on underlying (variable rate) loans being consolidated rounded up to the nearest one eighth of 1%. In the recent low interest rate environment consolidation volume has grown dramatically as borrowers have sought to lock in as permanent the favorable rates currently in effect on their variable loans. This has enabled a large number of borrowers to secure a valuable refinance benefit.
Borrowers who lock in fixed rates through consolidation in other periods, however, can miss out on more advantageous variable rates that they would have had on underlying loans. This raises concerns with regard to those using consolidation for repayment relief who may need to consolidate in years in which the available fixed rate is high and thus disadvantageous.
It is generally acknowledged that recent cohorts of low fixed rate consolidation loans will be costly to the federal government. This is because the government pays program lenders an interest subsidy designed to compensate lenders for the difference between the below market statutorily set rate charged to borrowers and fair market compensation on the loan. The rates being provided to borrowers on these consolidation loans, over time, are expected to be well below market rate.
To gauge with precision the added subsidy cost associated with the consolidation refinance benefit it is necessary to look beyond the recent time period and assess comprehensively how the subsidy rates on cohorts of loans are affected by the refinance benefit.
The central questions underlying the debate on the desirability of the existing consolidation loan rate structure seem to be: How favorable should the borrower interest rate be on a federally subsidized refinance benefit? Is the current rate structure well suited to accomplish policy aims?

STUDENT LOAN CONSOLIDATION CENTER STUDENT LOAN TRUST I ANNOUNCES TENDER OFFER FOR SOME OF ITS STUDENT LOAN ASSET BACKED AUCTION RATE NOTES

2009-10-27T18:59:00.000-07:00

Student Loan Consolidation Center Student Loan Trust I, a Delaware statutory trust (“SLCC”), today announced that it has commenced a tender offer to purchase some of its outstanding Auction Rate Student Loan Asset-Backed Notes, Senior Series 2002A and 2002-2A, for aggregate cash consideration not to exceed $26,000,000.

The offer expires at 11:59 p.m. (Eastern Time) on February 27, 2009, unless it is extended or earlier terminated. Tenders of the auction rate notes may be made at any time prior to the expiration of the tender offer.

Validly tendered auction rate notes will be accepted for payment subject to, and at prices determined pursuant to an auction process. Under the auction process, each registered owner of auction rate notes desiring to tender any of its auction rate notes must, prior to the expiration of the tender offer, specify the price or prices (in integral multiples of $100), for each $50,000 principal amount of auction rate notes, at which such owner is willing to sell its auction rate notes to SLCC and the aggregate principal amount of auction rate notes (in integral multiples of $50,000) it is willing to sell at each such price. The price or prices specified must be not less than $30,000 (60% of the par value) (the “Minimum Price”) and not greater than $40,000 (80% of the par value). No auction rate notes will be purchased pursuant to the tender offer at a price less than the Minimum Price. However, valid tenders of auction rate notes that specify a price of less than the Minimum Price will be deemed to have specified the Minimum Price.

Promptly following the expiration of the tender offer, auction rate notes validly tendered at the lowest price will be accepted first and will continue to be accepted at the related price in ascending order of such prices. SLCC will only purchase the maximum principal amount of auction rate notes that may be accepted without causing the aggregate amount to be paid for such auction rate notes to exceed $26,000,000.

If validly tendered auction rate notes are accepted for payment in accordance with the auction process, SLCC will pay a total cash consideration for each $50,000 principal amount equal to the price at which such auction rate notes were accepted for payment plus accrued and unpaid interest thereon from the last applicable distribution date to, but not including, the settlement date, which is expected to be the third New York City business day following the expiration of the offer.

The terms and conditions of the offer are set forth in the offer to purchase for the auction rate notes, dated January 23, 2009. This press release is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of an offer to sell any of the auction rate notes. The offer may only be made pursuant to the terms of the offer to purchase. The offer to purchase contains important information that should be read carefully in its entirety before any decision is made to tender or not tender auction rate notes pursuant to the offer.

STUDENT LOAN FORGIVENESS PROGRAM

2009-10-26T16:38:00.000-07:00

Student loan forgiveness and service payback programs provide financial incentives in exchange for a specific work commitment. Loan forgiveness programs repay a percentage of an employee’s student loan after service commences; service payback programs cover a portion of a student’s school costs in return for an agreement to work in a specific job for a specified period of time in the future. These programs have one or more of the following four goals: to provide financial assistance to students to help them with the costs of college, to entice individuals to choose a particular occupation or field of specialization, to entice individuals to work for a period of time in a certain job or underserved region, or to entice individuals to remain in a high need occupation, region or underserved facility. Several bills that would expand existing loan forgiveness or service payback programs or extend them to additional occupational groups have already been introduced in the 109th Congress; over 40 bills were introduced in the 108th Congress.

The first major federal loan forgiveness program, the National Defense Student Loan Program, was authorized by the National Defense Education Act in 1958. It was a loan forgiveness program for public school teachers. Loan forgiveness provisions currently applicable to Federal Family Education Loans and Direct Loans were adopted in the 1998 reauthorization of the Higher Education Act of 1965, as amended (HEA). These provisions are for a teacher loan forgiveness program as well as a demonstration loan forgiveness program for childcare providers. Loan forgiveness is also available for Perkins Loans (low-interest loans made by institutions of higher education to students with financial need) for borrowers who work in specific public service jobs.

In addition to the U.S. Department of Education administered provisions, there are federal loan forgiveness and service payback programs specific to particular occupations or categories of borrowers, for example, the military and health professions. States also offer many loan forgiveness and service payback programs. A survey of 100 state programs in 2000-2001 indicated that 43 states had one or more of these programs. The majority of financial aid administrators interviewed about these programs for this survey reported that they were effective in meeting students’ financial needs and workforce needs. Nevertheless, concerns about the efficacy of these programs were also expressed by financial aid administrators.

In the 108th Congress, legislation was passed (P.L. 108-409, the Taxpayer- Teacher Protection Act of 2004), that will, among other things, temporarily expand student loan forgiveness to $17,500 for highly qualified special education teachers working in elementary and secondary schools, and for highly qualified mathematics and science teachers working in secondary schools. The expanded student loan forgiveness amount applies only to new borrowers on or after October 1, 1998, who borrow before October 1, 2005. As part of its reauthorization of the Higher Education Act, the 109th Congress will likely consider whether these new provisions should be made permanent.

CONSOLIDATING YOUR EDUCATION LOANS

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You qualify if you can consolidate loans from the eligible loan programs listed below and you are in the grace period or in repayment for each loan to be consolidated. This process is called consolidation.

Here are the answers to the questions borrowers frequently ask about loan consolidation:

Why should I consolidate my education loans?
Consolidation makes repayment easier and can lower your monthly payment. You’ll be responsible for just one loan payment each month instead of a separate payment for each of your loans, you’ll deal with just one lender, and your repayment schedule will be extended. In the case of federal student loans, you can lock in the new low fixed rate.

Is there a downside to loan consolidation?
The interest rate on the consolidated loan may be higher than the rates of your other education loans. As a result of the higher interest rate and the longer repayment schedule, the total interest you’ll pay on the loan can be much greater than you would have paid without consolidating. Only you can decide if a lower monthly loan payment and the flexibility of dealing with just one lender offsets the increased finance charge.

Do I qualify for loan consolidation?
You qualify if you can consolidate loans from the eligible loan programs listed below (Stafford, PLUS, Perkins, HPSL) or other federal education loans and you are in the grace period or in repayment for each loan to be consolidated. Some lenders require you to consolidate a specified minimum amount of loans to qualify for their consolidation program.

Which types of loans can be consolidated?
Stafford (subsidized and unsubsidized); Federal Direct Stafford (subsidized and unsubsidized); Parent Loan for Undergraduate Students (PLUS); Federal Direct PLUS; SLS (ALAS); Perkins (NDSL); Health Profession Student Loans (HPSL); Loans for Disadvantaged Students (LDS); Nursing Student Loans (NSL); Federal Consolidation Loans; and Federal Direct Consolidation Loans. Although other education loans such as Law Access Loans cannot be consolidated, the amount of those loans will be considered in calculating the length of repayment on the consolidated loan.

What is the interest rate?
The interest rate is fixed and is based on a weighted average of the rates on the loans being consolidated, rounded up to the nearest 1/8 of one percent. The rate cannot exceed 8.25 percent. You will pay more interest for a long-term loan.

Are there any fees or charges?
There are no origination fees, service charges, or prepayment penalties.

When may I consolidate my loans?
Any time during your grace or repayment period. If you want to take advantage of your grace period, submit your application no earlier than four months into the grace period for the loans you want to consolidate. You may also consolidate your loans while still in school if you are attending at least half-time and have at least $5,000 in loans. However, if you do so, you will forfeit the in-school subsidy on the loan interest and you will lose the six-month grace period you would have had before the loans go into repayment. The loans will officially be in repayment status, even though repayment will be deferred while you are in school.

STUDENT LOAN CONSOLIDATION FACTS

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Did you know the interest rate on variable rate Stafford loans is at an all-time low? By taking this opportunity to consolidate, you can reduce your monthly payment and guarantee a fixed interest rate lower than the maximum rate of 8.25%.

Benefits of Student Loan Consolidation

Fixed interest rates as low as 4.75%
One low monthly payment
No fees or credit checks
No prepayment penalty
Flexible repayment terms

Be prepared
You may be the target of marketing efforts by many student loan consolidation companies. Unfortunately, not all companies offering consolidation are credible. Some may inaccurately portray themselves as the only lenders to offer consolidation loans or make promises that seem too good to be true. Therefore, it is a good idea to research the lender you choose to consolidate your student loans.

Help from our financial aid office
To help you lock in these low consolidation rates, our financial aid office has prepared a list of some reputable consolidation lenders, allowing you to compare which lender programs offer you the best terms and greatest savings. Our financial aid office is familiar with these lenders as they all have many years of experience in the student loan industry and make loans to some of our students.

How to choose the best lender for consolidation
Because some lenders offer unique consolidation benefits, choosing one lender may save you hundreds, or even thousands, of dollars in interest over the life of your loan (depending on the loan amount you consolidate). The following lender list is to be used as an initial guide to compare benefits offered by the different lenders. Benefits may change, or there may be certain restrictions that apply. Before making a final lender choice, contact the lender by phone or online to receive detailed benefit information.

FEDERAL STUDENT LOAN CONSOLIDATION

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Federal Student Loan Consolidations were previously available through FFELP Lenders (banks, credit unions and other lending institutions) as well as through the federal government in the form of a Federal Direct Consolidation Loan. Recent legislative cuts made by Congress have resulted in federal student loan consolidation becoming uneconomical. This, combined with the credit market deterioration, has caused virtually all FFELP Lenders to suspend participation in the federal consolidation loan program. Therefore, students wishing to consolidate their education loans will need to consolidate through the Federal Direct Consolidation Loan Program.

To qualify for a Direct Consolidation Loan, borrowers must have at least one Direct Loan or Federal Family Education Loan (FFEL) that is in grace, repayment, deferment or default status. Loans that are in an in-school status cannot be included in a Direct Consolidation Loan. Therefore, if you are currently in school, consolidation is not something that you can pursue at this time.

When you graduate or are no longer enrolled at least half time, you may wish to consider whether consolidation is right for you. To help you make that decision, please visit the Direct Consolidation Loan website (http://loanconsolidation.ed.gov/ ). There you can learn more about Direct Consolidation Loans, including questions to ask to determine if a consolidation loan is right for you, the specific eligibility criteria the loan terms and interest rate calculation. You can also contact the Direct Loan Consolidation Information Center at 1-800-557-7392.

Please feel free to contact the Financial Aid Office if you have any questions regarding the above information.

THE FEDERAL STUDENT LOAN FORGIVENESS LAW

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The College Cost Reduction and Access Act of 2007 helps public service lawyers in two main ways:

Lowers monthly student loan payments on federally guaranteed student loans (Income Based Repayment or IBR)
Cancels remaining debt for public servants after 10 years of public service employment (Loan Forgiveness for Public Service)

Income Based Repayment (IBR)
Congress created a new repayment program—income based repayment (IBR), which significantly reduces monthly payments for high debt/low income borrowers with “partial financial hardship.”

What will my monthly payment be under IBR?
Annual educational debt payments under IBR are capped at 15% of discretionary income (defined as adjusted gross income minus 150% of the poverty level for the borrower’s family size). The following example uses the 2007 Federal Poverty Guideline for a household of one of $10,210.

Example: Jane Justice owes $100,000 in qualifying debt at 6.8% interest and takes a job paying $40,000 to start.
She elects the income-based repayment (IBR) plan. In her first year, Jane’s monthly payments under IBR are $309 (as opposed to $1151 under standard ten-year repayment).
As Jane gets annual salary increases of 5%, her monthly payments under IBR gradually rise, until in year 10 her monthly payments are $526.

How does a spouse’s income affect IBR?
A married borrower who files a separate Federal income tax return will have the amount of the borrower's income-based repayment calculated solely on the basis of the borrower's student loan debt and adjusted gross income, rather than on the combined income of the borrower and the spouse.

Which student loans are eligible for IBR?
All Federal Direct Loans (FDL) and federally guaranteed loans (FFEL) are eligible including: subsidized and unsubsidized Federal Stafford loans; Federal Grad PLUS loans (but not Parent PLUS loans); and Federal Direct Consolidation loans; however only Federal Direct loans (including Federal Direct Consolidation loans) are eligible for Loan Forgiveness for Public Service.

Which student loans are not eligible for IBR?
Loans made by a state or private lender and not guaranteed by the federal government are never eligible. Also, Parent PLUS loans are not eligible for IBR. Federal Perkins Loans are only eligible when part of a Federal Direct Consolidation Loan. Borrowers should seek advice before consolidating a Perkins loan because Perkins loans include cancellation provisions.

When can I elect IBR?
IBR goes into effect July 1, 2009. Members of the Class of 2009 will be able to elect IBR within two months of graduation.

People who graduated or will graduate before IBR takes effect will have to wait to elect IBR. Borrowers may elect the previously established Income-Contingent Repayment (ICR) plan while waiting to switch into IBR in 2009. Monthly payments under ICR are higher than under IBR but still much lower than payments calculated using a standard 10 year repayment term.

CALIFORNIA STUDENT LOAN CONSOLIDATION PROGRAMS

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The California Student Aid Commission and EDFUND, its auxiliary, are advising California’s college-going students, college graduates, and their parents who have borrowed money for education to look at consolidating their education loans into one loan before July 1st. Interest rates for most federal student loans are currently 2.77 percent for students still in school and 3.37 percent for graduates. Rates will rise by nearly 2 percent on July 1, 2005. Consolidating loans now offers most borrowers the chance to lock in a fixed rate near the current record-low interest rates.

In addition, the Commission/EDFUND wants students who are attending college to know that they may be able to consolidate, too. In May, the U.S. Department of Education clarified that college-attending students with government-backed loans from banks and other lenders can consolidate their loans. This action confirmed that borrowers have the option of requesting that their lender(s) put their existing loans into repayment even while enrolled in school, and then applying for a new consolidation loan to pay off those loans. Borrowers should be aware that entering repayment early comes with a penalty: they lose the six-month grace period after graduation or leaving college. If they remain in school, they can obtain a deferment on the loan consolidation payments.

Previously, borrowers with Federal Direct Loans were allowed to consolidate prior to leaving education programs, but the same borrowers in the lender-based Federal Family Education Loan Program were considered not eligible. Borrowers should contact their lender and college financial aid advisors to learn more about loan consolidation.

“The Commission/EDFUND urges those with loans for education to look at taking advantage of low interest rates – now – by consolidating their loans before the July 1st interest rate hikes,” said Diana Fuentes-Michel, executive director of the California Student Aid Commission. “Some high-balance education borrowers take years to pay off their student aid debt, and these borrowers could save considerable interest over the period of the loan.”
As of July 1st, the rate for federal Stafford loans will increase 1.93 percentage points to 5.3 percent for loans that are in repayment, and Federal PLUS loans for parents will rise 1.93 percent to 6.1 percent. This is the first interest rate increase since July 2000. Federal student loan interest rates are typically variable, set annually for the period of July 1 through June 30, and for student borrowers cannot rise higher than 8.25 percent.

“With interest rate hikes for education loans looming, borrowers with high debt should explore loan consolidation today,” said Becky Stilling, President of EDFUND. “By talking the option through with their student loan lenders, borrowers can also make sure they’re making the right choice.”

The loan consolidation program was created by Congress in 1986 so borrowers with multiple loans and higher loan balances could have an easier repayment method. Depending on the amount of the new consolidation loan, payments can be extended to up to 30 years.

While refinancing is helpful for college students and graduates, students in expensive professional programs like medical programs find loan consolidation particularly attractive. Consolidation surged since 2000 when student loan interest rates started dropping.

VALUING THE STUDENT LOAN CONSOLIDATION OPTION

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The consolidation option for federal student loans allows borrowers to consolidate one or more loans into a single loan and to extend the time to repay that debt. For loans originated before July 2006, borrowers also have the right to consolidate a variable-rate loan into a fixed-rate loan at the short-term interest rate. The option adds substantial costs to the federal student loan programs.

Accurately estimating the cost of the consolidation option to the government presents a number of technical challenges. To begin with, market prices cannot be used to estimate that value because the student loan consolidation option differs substantially from private options. For example, holders of variable-rate student loans have the option to convert them to a fixed-rate loan at either the prevailing short-term interest rate or the rate for the next year. There is uncertainty as to when a borrower will consolidate and at what interest rate, because some borrowers do not consolidate when it is most financially advantageous to do so, and others do not consolidate at all. Borrowers’ failure to take full advantage of consolidation reduces the cost of the option to the government.

This Congressional Budget Office (CBO) background paper describes the valuation of a typical student loan consolidation option, one in which a variable-rate 10-year loan is converted into a fixed-rate loan with a term to maturity of 20 years. That case was one of many that CBO analyzed to find the expected cost of the option, which was reported in an earlier CBO paper.

SAVE THOUSANDS WITH FEDERAL STUDENT LOAN CONSOLIDATION

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April 19, 2006 /PRNewswire-FirstCall via COMTEX News Network/ -- Student loan interest rates are projected to increase almost 40 percent on July 1, leaving many borrowers one last chance to consolidate their federal student loans at this year's low interest rates. Federal student loan consolidation with Nelnet allows students and families a chance to reduce monthly payments and lock in low interest rates -- potentially saving thousands of dollars over the life of the Consolidation loan.

For example, a student loan borrower in grace or in-school deferment with a $20,000 balance and 20-year consolidation term can save almost $5,123 in interest by completing and sending in his or her Consolidation loan application before July 1. This interest savings is calculated over the life of the Consolidation loan for borrowers with Stafford loans, which are consolidated at the applicable 4.75 percent interest rate for loans in grace or deferment as
compared to the 6.625 percent interest rate projected for such loans as of July 1. In addition, a borrower could reduce his or her monthly payment by $22 by consolidating at the lower interest rate.

For Stafford borrowers with loans in repayment totaling $20,000 and applying a 20-year consolidation term, a borrower could save almost $5,257 in interest by consolidating before July 1 at the lower interest rate. This savings is calculated using the applicable interest rate of Stafford loans that are in repayment, 5.375 percent, as compared to the projected interest rate for such loans as of July 1, 7.25 percent. A borrower could reduce his/her monthly payment by $22 by consolidating at the lower interest rate.

"This is the last hurrah for in-school borrowers," said Nelnet Spokesman Eric Solomon. "After July 1, in-school borrowers will have to wait until they graduate or drop to less than half-time enrollment to consolidate, forcing them to take a risk of higher interest rates and paying more for their education." New provisions in the Deficit Reduction Act, which passed in February, 2006, prevent borrowers from requesting early repayment and consolidation of loans in an in-school status after July 1.

"We [at Troy University] strongly urge all eligible students to consolidate before the July 1 interest rate change," said Fred Carter, Associate Vice Chancellor of Financial Aid at Troy University. "This allows them to get the lowest possible monthly payment, a fixed interest rate, and the opportunity to save thousands of dollars in interest payments.

Many of our students still repay within the 10 years but consolidation affords them the opportunity to lock in the lowest possible rate over the longest time." Student loan consolidation combines multiple federal student loans, such as Stafford and PLUS loans, into one loan with one low monthly payment. The fixed interest rate for a federal student loan consolidation is determined by taking the weighted average of the interest rates of the original student loans, rounded up to the nearest 1/8 percent.

In addition, Nelnet offers valuable benefits to borrowers, including a 1 percent interest rate reduction after 36 initial, regular, on-time payments, and an additional .25 percent interest rate reduction for auto-debit payments. Together, these benefits reduce borrowers' interest rates by another 1.25 percent, potentially saving thousands of dollars in interest over the life of the loan.

"Consolidation presents a great opportunity for borrowers to effectively manage their student loan debt and save money," adds Solomon. If you are unsure what's best for you, please contact a Nelnet Consolidation Advisor via e-mail or Web chat at www.nelnet.net/save or call toll-free 24 hours a day, seven days a week at 1.866.4CONSOL (426.6765).

Nelnet is one of the leading education finance companies in the United States and is focused on providing quality products and services to students and schools nationwide. Nelnet ranks among the nation's leaders in terms of total net student loan assets with $20.3 billion as of December 31, 2005. Headquartered in Lincoln, Nebraska, Nelnet originates, consolidates, securitizes, holds, and services student loans, principally loans originated under the Federal Family Education Loan Program of the U.S. Department of Education

WHAT ARE THE PROS AND CONS OF FEDERAL STUDENT LOAN CONSOLIDATION

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There are many good reasons to consolidate your student loans. However, there are other factors that borrowers will need to consider before making their decision.

First, on the positive side. You’ll simplify your life with one monthly payment that will come from one lender (and one point of contact if you have any questions). Because you are extending your loan’s term (or how many years it’s going to take to pay back your consolidated loans), your monthly payment will be lower. That’s where the term “payment relief” comes from.

Loan terms range anywhere from 10 years all the way up to 30 years. And the interest rate on a federal consolidation loan is fixed—which is unlike variable interest rate loans that can change. Your consolidated loan’s interest rate will be equal to the average of all the student loans you want to consolidate, which is then rounded up to the nearest 1/8 percent. The maximum rate your loan can be is 8.25 percent.

Pros & Cons
Positive +

One monthly payment (one stamp!)
One lender to contact
Lower monthly payment (more cash for food!)
No fees
No credit checks
No prepayment penalties (so when you win the lottery, you can just pay it all off!)
Borrower benefits or “Goodies” – cash back, reduced rates

Negative –

Takes longer to pay back (hopefully before your kids go to college)
Total cost of the loan is higher
Locked interest rate = if rates go down, your rate won’t change
Lose benefits (if any) from previous loans

A GUIDE TO STUDENT LOAN CONSOLIDATION

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Though the loan consolidation process and its terminology can be complex and confusing, the basic concept is easy to understand: You take all of your outstanding federal student loans (even if it’s just one loan) and bundle them into one new student loan with one monthly payment. The new rate is fixed—meaning it won’t change—and the length of the loan can be extended all the way up to 30 years, which can lower the amount of your monthly payments. It’s a kind of refinancing of your federal student loans.

Student loan consolidation has grown significantly during the last several years. Students and their families have had to take on more financial burden due to a combination of steep increases in tuition (annual costs rose 35 percent during the last five years) as well as a decline in the amount of federal and state financial aid, including grants, to students. Put another way, this new era is being called “debt for diploma.” In turn, loan consolidation has become such a viable and necessary option that some 2.5 million students consolidated their loans in 2005. The U.S. Department of Education predicts that nearly as many students will do the same in 2006.