Press Releases
Loan Consolidation During Grace Period Can Save Borrowers Thousands
Federal Loan Consolidation provides multiple benefits
Harrisburg, PA (June 14, 2007) - American Education Services (AES) is encouraging students and recent graduates to consolidate their Federal Stafford Loans during the six-month grace period that follows postsecondary graduation, allowing them to lock in an interest rate that is 0.6 percent lower than the repayment rate.
The numerous results of consolidation are beneficial to an audience that is traditionally challenged to make ends meet as they take on the responsibility of affording housing, transportation and other basic necessities, while also facing the burden of student loan repayment. Consolidating student loans during grace locks in a fixed interest rate that is 0.6 percent lower than the repayment rate; it also compiles several monthly payments into one monthly payment that may be more affordable.
"The six-month grace period gives graduates a payment-free cushion after graduation, allowing them time to find a job and get financially situated," said Dick Willey, AES President and CEO. "Unfortunately many borrowers spend those six months without a single thought about their upcoming payments. But it is beneficial to take that time to at least consider consolidation. By consolidating during their grace period, they lock in a lower interest while combining their loans into one single monthly payment. It’s worth it to take the time to consider this option."
Borrowers who have already entered into repayment should also take consolidation into consideration as variable interest rates on federal student loans will be increasing on July 1. Consolidating prior to July 1 may lock the borrower’s interest rate in at a lower rate.
There are pros and cons to consolidation that should first be taken into consideration. AES consolidation counselors are available to work with the borrower to consider all debt management alternatives.
Borrowers can also visit the loan consolidation section on AES’ website, aesSuccess.org, where a Frequently Asked Questions section addresses the most common loan consolidation questions and provides an online application feature.
For further information, borrowers can call 800-338-5000 or email network@aessuccess.org