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The latest news, trends and information to help you with your recruiting efforts.

Posted May 07, 2006 by

Deficit Reduction Act controversy

Several government rulings, including the Deficit Reduction Act of 2005 (‘DRA’) signed by President Bush back in February, are being challenged in the Courts on several fronts. However, don’t wait to consolidate based on any pending court decision: if you’re about to graduate and you’ve got student loans, now’s the time to consolidate your student loans at today’s lower rates.
A student loan marketing company, OneSimpleLoan.com, is the lead plaintiff in a lawsuit against Margaret Spellings, the Secretary of the Department of Education. This recently filed lawsuit claims that the Department of Education has prematurely terminated a “two-step” consolidation process, depriving qualified student loan borrowers the ability to reconsolidate their student loans to save interest fees over the life of the loan. No decision as yet.
The Deficit Reduction Act’s constitutionality is being challenged because there is a discrepancy between the House and Senate versions regarding Medicare. (!) More importantly, the Deficit Reduction Act has several sections regarding student loans, including fixing Stafford loans at a 6.8% interest rate effective July 1, 2006. Again, no word on this as yet. Whatever you do, make sure you take advantage of today’s student loan and consolidation rates and benefits now!

Posted March 28, 2006 by

The Politics of Financial Aid

You might think that getting a student loan is a matter of simply going to your local bank or financial aid office, or that a student loan is a student loan is a student loan. However, the recently-passed Budget Deficit Reduction Act of 2006 suggests that you do your homework on how and where you get your student loans.
Why? Because of the long-term implcations of how you pay back your loans once you graduate.
For example, there’s a flurry of Congressional activity going on now to repeal the “single lender rule.” Currently, if you obtain all of your student loans from one lender, you have no choice but to consolidate your student loans with that lender. So what? you might ask. Such a decision could cost you thousands of dollars over the life of the consolidation loan, that’s what!

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