(Lincoln, NE)--Nelnet, the National Education Loan Network, announced today that it would renew its policy of holding student loan consolidation applications to ensure borrowers the maximum benefit if interest rates drop on July 1.
Each year, based on the interest rates of the 91-day U.S. Treasury Bills, federal student loan interest rates are recalculated and made public during the last week of May. Beginning on May 1, completed student loan consolidation applications received by Nelnet will be held until the new rate is announced. If interest rates climb, the application will be processed with the current interest rate, but if they fall, Nelnet will postpone the consolidation process until after the July 1 rate change to make certain the borrower receives the best rate available. At any time, borrowers can direct Nelnet to consolidate their loans immediately.
"Each year, Nelnet customers have an opportunity to benefit with our money-saving program," said Don Bouc, Nelnet President and chief spokesperson. "Borrowers can start the process of consolidation right now, knowing Nelnet will make sure they receive the lowest rate. Consolidating at a lower rate, even if the change in the rate is small, can save a borrower hundreds of dollars in interest over the life of the loan."
Student loan consolidation allows multiple federal student loans, such as Stafford and PLUS loans, to be combined into one loan with one monthly payment. The fixed interest rate for the new consolidated loan is the weighted average of the interest rates of the original federal student loans. Borrowers consolidating their student loans can currently receive a rate as low as 2.875%.
In addition, Nelnet offers valuable benefits to borrowers who complete and electronically sign their application online, including a 1% interest rate reduction after 36 initial, regular, on-time payments and a .25% interest rate reduction by making auto-debit payments. Together, these benefits could allow borrowers to reduce their interest rate by another 1.25%, potentially saving thousands of dollars in interest over the life of the loan.
More information regarding student loan consolidation is available at www.consolidation.nelnet.net or by calling toll-free at 1.866.426.6765.
Nelnet is one of the leading educational finance companies in the United States and is focused on providing quality student loan products and services to students and schools nationwide. With over $12 billion in total assets, Nelnet originates in excess of $2 billion for itself and its service partners annually, and its servicing software is used by 35 clients, including Nelnet, to service over $46 billion in student loans. Nelnet ranks among the nation's leaders in terms of total student loan assets.
Nelnet offers a broad range of student loan and financial services and technology-based products, including student loan origination and lending, guarantee servicing, and a suite of software solutions. Our products are designed to simplify the student loan process by automating financial aid delivery, loan processing, and funds disbursement. Our services help to facilitate and streamline education finance for all involved in the industry, including student and parent borrowers, lenders, financial aid officers, guaranty agencies, governmental agencies, servicers, and the capital markets.
Additional information about the company is available at www.nelnet.net.
Nelnet is a registered service mark of Nelnet, Inc. All rights reserved.