In this issue:
- Introduction
- Breaking News!
- Survey Results
- Scholarship Updates
- Featured article: Solving the Federal Student Loan Interest Rate Puzzle
- A Word from our Sponsors
- Privacy and Subscription Information
- Back Issues
- Sponsor this newsletter!
Federal student loan consolidation tops the news this month as the rates for the 2006 - 2007 academic year have been set. We'll tell you the why and how of consolidating your student loans to help you maximize your post-graduation dollars, but if you just want to do it now, call us at 877-328-1565.
At the same time, alternative student loans for undergraduates and graduates are now available to help with summer session expenses and for those who want to plan ahead for the fall semester and beat the rush! Enjoy this month's newsletter, forward it to your friends, and let others know how to save more money!
Christopher S. Penn
Publisher, The Student Financial Aid News
Producer/Director, The Financial Aid Podcast
A Publication of the Student Loan Network
1250 Hancock Street, Suite 703N
Quincy, MA 02169
Featured Sponsor: Financial Aid in 30 seconds!
Financial aid can be a bit confusing. Here's a 30 second quick take on the financial aid process!
Start with:
- http://www.StudentScholarshipSearch.com - free scholarship database
- http://www.FAFSAonline.com - free FAFSA filing information
Next:
- http://www.StaffordLoan.com - for federal Stafford loans
- http://www.ParentPLUSLoan.com - for PLUS loans for parents
- http://www.AlternativeStudentLoan.com - private student loans, no FAFSA
- http://www.GradLoans.com - graduate, law, and medical students
Finally:
With the final auction of the 91-day Treasury Bill on May 30, 2006, federal student loan rates have been set for the new academic year beginning July 1, 2006. The new rates for federal student loans are:
- Stafford Loans for students in school: 6.543%, up from 4.70%
- Stafford Loans for graduates in repayment: 7.143%, up from 5.30%
- Parent Loans for Undergraduate Students (PLUS): 7.943%, up from 6.10%
The savings borrowers can expect by consolidating are significant. The average college graduate with $30,000 in federal student loans who consolidates before the deadline, will save more than $6,300 in unnecessary interest - savings that will only occur if borrowers consolidate before June 30.
Students wishing to file a consolidation application should call (877) 328-1565 or do so at http://www.StudentLoanConsolidator.com immediately
A big thank you to everyone who completed the survey in last month's newsletter. 5 winners will be chosen and announced on the Financial Aid Podcast. The winners must claim their prizes no later than June 9, 2006.
The results of the survey were revealing, including:
- 46% of our readers want HTML newsletters with all the pretty formatting, while 33% want plain text, and the remainder want something else.
- 73% of our readers want shorter, excerpt-length articles, while 11% want the full monty.
- 70% of our readers have noticed that the newsletter contains sponsored messages and have at least considered Student Loan Network services.
- Scholarships and grants are the most popular "we want more!" item, followed by information about alternative student loans, credit card and consumer debt, federal student loan consolidation, and Stafford Loans.
Thanks to everyone who responded. If you missed out on the chance to win stuff, don't worry - more opportunities will be coming soon, including a brand new scholarship program we have in testing right now.
Another big month for our scholarships web site, www.StudentScholarshipSearch.com - now with over $654 million in scholarships! Here's a selection of awards added in the last month.
- Washington State Governor's Scholarship for Foster Youth
- Office of Personnel Management Student Loan Repayment Program
- Federal Student Loan
- Juniata College Arts Scholarships
- Juniata College Environmental Responsibility Scholarships
- Juniata College Leadership Scholarships
- Juniata College Service and Peace Making Scholarships
- University of Chicago Hormel Public Interest Program Loan Forgiveness Program
- Coca-Cola Two Year Colleges Scholarship Program
- Two Ten Footwear Classic scholarships
- Parapsychology Foundation Eileen J. Garrett Scholarship
- Frederic J.C. Liggin Phase Three Productions Single Mother's Scholarship Fund :
- State directory of scholarships for firefighters and families
- Second Life Scholarship - Linden Lab Fellowship in the Visual and Performing Arts
- Blogging for Progress Scholarship
- Private student loan consoliation
- AICPA John L. Carey Scholarships
- NYU Harvey Beker MBA Graduate Scholarship
- Mexican American Legal Defense and Educational Fund MALDEF Law School Scholarship Program
- Academic Competitiveness Grants and National Science and Mathematics Access to Retain Talent Grants
- University Of Hawai'i At Manoa Ernest Chang Piano Studio Scholarship
- BP Community Scholarship Program
- The James Beard Foundation Scholarship Program
International students can find resources at:
Remember, you can get daily scholarship updates by listening to the Financial Aid Podcast and visiting the Student Scholarship Search web site!
Also, stay tuned - we will be taking the wraps off a brand new scholarship program very soon, and Financial Aid News readers will get the first crack at the new scholarships as a reward for your subscription! Details will be coming soon.
Solving the Federal Student Loan Interest Rate Puzzle
Are you confused about student loan interest rates with all the recent announcements? Here's a quick primer on what's happening.
For students with loans taken out after July 1, 2006
Federal student loans taken out after July 1, 2006 will have fixed interest rates for the life of the loans. The interest rates are:
- Stafford loans of any kind: 6.8%
- PLUS loans, undergraduate or graduate: 8.5%
Additionally, for the first time, PLUS loans will be available for graduate students. Visit GradLoans.com for more information about the new Graduate PLUS loan program.
For students with loans taken out before July 1, 2006
Federal student loans taken out before July 1, 2006 will remain variable interest rate loans. These loans will re-adjust every July 1 based on the results of the 91-day Treasury Bill Auctions, unless you consolidate them and lock in your interest rates. Bear in mind that today's lower interest rates are only in effect until June 30, 2006, so if you have existing federal student loans and want to keep today's rates, you must consolidate them as soon as possible.
- Stafford Loans for students in school: 6.543%, up from 4.70%
- Stafford Loans for graduates in repayment: 7.143%, up from 5.30%
- Parent Loans for Undergraduate Students (PLUS): 7.943%, up from 6.10%
What do these rate increases mean for you? A student with an average loan balance of $30,000 will end up paying approximately $6,300 more in unnecessary interest if they wait to consolidate until after July 1. Consolidating your existing federal student loan rates today is essential if you don't want to pay the government thousands of dollars in extra interest.
And now a word from our sponsors...
The Financial Aid Podcast is financial aid radio whenever you want it - for free! No iPod required! On your PC, on a CD, on your iPod, at school, home, or work. Learn about student loans, scholarships, how to get a job, and more. Make sure you have the latest copy of iTunes from www.Apple.com and then visit:
http://www.FinancialAidPodcast.com/subscribe/
Got financial aid questions you want to have answered on the air? Call our comment line and leave a voicemail question!
Toll-free: 877-328-1565 extension 529!
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