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Feb 22, 2007

2007: Interest Rate Reduction for Student Single Loan Holders

Gotta give a closer look to this:

American Collegiate Financial Services (ACFS) is now offering a variety of interest reducing programs through their Federal consolidation loan program.

Student single loan holders have the option of consolidating their Federal student loans upon graduating, leaving school or dropping below half-time enrollment.

Consolidating allows the borrower to obtain a fixed interest rate, lower monthly payments (uh-oh...) and take advantage of interest rate reduction programs.Interest rate reduction programs are incentives for automated and on-time payments.

The standard throughout the consolidation industry has been a 0.25% reduction for ACH, an automatically withdrawn payment from a checking or savings account and a 1.00% reduction for making 36 or 48 consecutive on-time payments.

"Unfortunately, borrowers planning to pay their loans off in a few years cannot fully benefit from the 1.00% reduction after 36 months because it takes at least three years to qualify," stated John Vis, President and CEO of ACFS.

Recognizing that student loan holders are individuals with unique financial needs, ACFS has launched a new incentive of a 0.75% reduction, awarded for 12 consecutive on-time payments.

The 0.75% reduction, along with the 0.25% reduction, is the most efficient interest rate reducing program available.