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Top Questions about NextStudent
Consolidation Loans*
Can I apply online?
Yes you can. NextStudent now offers Electronic Signature, to complete the online
application experience. Just
use our simple application wizard and you'll be
on your way to saving on your student loan payments.
Why should I consolidate
my student loans?
Consolidation offers many benefits-even if you’re
currently making your monthly payments without any
difficulty. - You can make monthly bill paying easier with one student
loan payment to one lender.
- The rate on a Federal
Consolidation Loan is fixed for
the life of the loan. .
- Consolidating will help ease the pressure on your monthly
budget by reducing your monthly student loan payment 10% – 60%.
- You can save money by using your student loan payment
savings to pay off high-rate debt, such as credit cards.
- Consolidation will help your credit scores and debt-to-income
ratio, both key factors if you’re looking to purchase
or refinance a home.
See our before and after examples
for a look at what consolidating your student loans can do
for you.
Won’t my total cost increase if I extend repayment
to 30 years?
Extending the repayment period does increase total interest
payments, since smaller payments are made over a longer period
of time. However, there are no prepayment penalties for accelerating
repayment, so you could pay off the loan in a shorter period
of time and save on total interest payments.
Can my parents consolidate their Federal PLUS loans
with my student loans?
All loans must be under the same borrower's Social Security
Number, thus parents cannot consolidate their PLUS Loans
with their children's Stafford Loans, or vice-versa.
How is the interest rate determined?
The interest rate is determined by taking a weighted average
of the interest rates on all loans to be consolidated and
rounding up to the nearest 1/8 or a percent of 8.25%, whichever
is less.
Is the interest tax deductible?
Most people can deduct interest paid on federal student consolidation
loans. Consult your tax advisor for more information.
How do I know what my payment will be?
Try our consolidation
loan calculator to get an idea of the savings you can
expect from a consolidation loan.
How do I apply?
NextStudent makes it simple. Call a NextStudent Education
Finance Advisor at (800) 299-4639 or begin
the application process online.
You'll be able to download your preprinted online application
through our secure servers the same day or have the application
mailed to your home.
* Please be aware that while we continue to offer Private Student Loans, NextStudent is not currently able to accept any new PLUS, Grad PLUS, Stafford, or Federal Consolidation Loan applications.
On October 1, 2007, legislation went into effect that cut $21 billion in subsidies to FFELP lenders like NextStudent. We have been searching, and continue to search, for avenues that would allow us to keep offering FFELP loans. But at this point, until market and regulatory conditions change, we find ourselves forced to suspend our federal education loan programs.
We value your business, and we want to make sure you’re able to get the money you need to pay for school. We encourage you to take advantage of college scholarships and your available federal financing options. But if you’re still in need of a parent or student loan, please give us a call, and we’ll do what we can to help.
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