LINCOLN, Neb., May 29, 2007 /PRNewswire-FirstCall via COMTEX News Network/ -- Student loan interest rates for federally-guaranteed loans disbursed between July 1, 1998 and June 30, 2006 will adjust slightly when they are reset on July 1, 2007.
According to the results of today's United States 91-day Treasury Bill auction, the interest rate for Stafford loans in repayment will change from 7.14 to 7.22 percent. For Stafford loans in an in-school, grace or deferment status, the rate will change from 6.54 to 6.62 percent. Additionally, interest rates on PLUS loans will increase from 7.94 to 8.02 percent. The U.S. Department of Education will officially announce these changes in the near future.
For Stafford loans originated on or after July 1, 2006, the interest rate remains fixed at 6.8 percent. For PLUS loans made under the Federal Family Education Loan Program on or after July 1, 2006, the interest rate also remains fixed at 8.5 percent.
Nelnet (NYSE: NNI), a leading education planning and financing company, offers valuable benefits to borrowers, including a 1 percent interest rate reduction after 36 initial, regular, on-time payments and an additional 0.25 percent interest rate reduction for auto-debit payments. Together, these benefits can further reduce borrowers' interest rates by 1.25 percent.
Borrowers wishing to consolidate their federal student loans may be impacted by the increased interest rates. Federal consolidation loan interest rates are calculated by taking a weighted average of the interest rates of the federal loans being consolidated rounded up to the nearest 0.125 percent.
"Borrowers consolidating their federal loans can still save money over the life of their loan with Nelnet's borrower incentives and now have another year to lock in low interest rates well below the 8.25 percent cap," said Tim Bornemeier, Managing Director of Nelnet Customer Solutions. "The best thing to do is research your options now to determine if consolidation is right for you."
If you are unsure of what's best for you, please contact a Nelnet Consolidation Advisor via Web chat at http://www.nelnet.net/save or call toll-free 24 hours a day, 7 days a week at 1.866.4CONSOL (426.6765).
For 28 years, Nelnet has been helping the education-seeking family plan for their education, pay for their education and prepare for their careers. The company has invested hundreds of millions of dollars in products, services and technology improvements for students and the educational institutions they attend. These services include live counseling to help families through all aspects of the financial aid process, benefits for borrowers, including tens of millions of dollars in borrower loan fee discounts and other benefits, and Nelnet sponsored scholarships. Nelnet serves students in 50 states, employs approximately 4,000 associates and has $25 billion in net student loan assets.
Additional information is available at http://www.nelnet.com.
(code #: nnig)
SOURCE Nelnet
Eric Solomon of Nelnet, +1-202-659-2258
http://www.nelnet.com
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