TAMPA, Fla.--(BUSINESS WIRE via COLLEGIATE PRESSWIRE)--May 9, 2007--Over the past few weeks, there has been a great deal of negative publicity about marketing practices in the student loan industry.
New York State Attorney General Andrew Cuomo's investigation of lender kickbacks to financial aid offices of various colleges and universities as well as other deceptive lending practices have left many student borrowers wondering whether they have paid too much for their student loans.
At the same time, the House of Representatives, the Senate, and President Bush have all proposed various amendments to the Federal Family Education Loan Program (FFELP) that would reduce interest rates on future FFELP loans, while drastically reducing lender yields on such loans. The reduction in Lender yields, however, is likely to cost existing borrowers more because financial institutions may be forced to cut some of the benefits that they currently offer borrowers, effectively raising borrower interest rates. For example, lenders typically offer borrowers who make 36 consecutive on time payments a one percent reduction of their interest rate, saving the borrower thousands of dollars over the term of their loan. That benefit and others would likely be eliminated if the proposed legislation is enacted.
"We recognize that there is a great deal of confusion," said Michael Babb, President of Academic Financial Solutions. "But what we do know is that interest rates on existing variable rate loans are going up on July 1st of this year. If students have not consolidated by that time, they will pay significantly more over the life of their loan. We strongly encourage borrowers to act before June 30th," said Babb.
From its inception, Academic Financial Solutions established a reputation of serving the best interests of students and borrowers and has saved FFELP borrowers millions of dollars by reducing their payments through consolidation. For more information on how to consolidate Student Loan debt, call Toll-Free 1-866-523-1474 or visit www.AcademicFinancial.com.
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