Good news for student loan borrowers across the nation — Congress has repealed the “Single Holder Rule”, allowing any student loan borrower to consolidate their student loans with American Education Services (AES). Under the Single Holder Rule, borrowers whose federal student loans were held by one lender were only able to consolidate their loans with that lender. Now borrowers can consolidate their student loans with any eligible lender, including those who offer lower interest rates, rebates, better repayment terms and quality customer service. “We’re thrilled with this long-anticipated ruling,” said Dick Willey, AES President and C.E.O. “We receive consolidation requests from borrowers on a daily basis, looking to take advantage of our repayment benefits and services, and we have been forced to turn them down because of the Single Holder Rule. With this repeal, we can now welcome those borrowers with open arms and help them find the best repayment plan for their unique situation.” AES borrowers benefit from a 0.25-percent interest rate reduction for automatic direct debit of payment and a one-percent interest rate reduction after 36 consecutive, on-time payments. This ruling comes in the nick of time for borrowers as the federal student loan interest rate will be increasing by almost two percent on July 1, 2006 . By locking in the current low interest rate on their federal Stafford or PLUS loans and consolidating before July 1, a borrower with a $25,000 loan can save an average of $5,580 in interest. Marketing will become even more aggressive across the nation with this recent ruling. Borrowers should consider the lender’s reputation and customer service prior to choosing their consolidation lender. “Even with this rate hike fast approaching and the Single Holder Rule repeal, it is important that borrowers take the time to research and choose their lender wisely,” said Willey. “Our consolidation counselors will work with borrowers to identify all debt management alternatives. They should review the potential impact of consolidation on their current loans before signing on the dotted line.” Borrowers who are still in school may consolidate their eligible student loans if they request early repayment and waive their six-month grace period. Students, parents and graduates who would like more information on loan consolidation and AES services should call 800-338-5000, visit aesSuccess.org, or email questions to network@aessuccess.org.

American Education Services (AES) is a national financial aid services organization serving millions of students and thousands of schools through our guaranty, servicing, grant and financial aid processing systems. The funds generated from our extensive operations are used to improve education opportunities and lower the cost of assistance for students and their families while streamlining the entire process for the higher education community. For more information, please visit www.aesSuccess.org.

This entry was posted by Taman Siswa on Sunday, June 25, 2006 at 3:58 pm and is filed under Education News, Student Loan. Tags: Education News, Financial Aid, Grant, Loans, Student, Student Loan, . You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.