Proposed Legislation Could Cost Students Thousands
A petition by Congressman John Boehner (R-Ohio), seeks to eliminate consolidated fixed interest rates entirely. With the federal cap on student loans as high as 8.25%, Rep. Boehner's proposal could equate to higher monthly payments and thousands of dollars in unnecessarily paid interest for student borrowers.
St. Petersburg, FL (PRWEB) July 7, 2004
A petition by Congressman John Boehner (R-Ohio), seeks to eliminate consolidated fixed interest rates entirely. With the federal cap on student loans as high as 8.25%, Rep. Boucher's proposal could equate to higher monthly payments and thousands of dollars in unnecessarily paid interest for student borrowers.
At a time when student loan interest rates have reached historic lows, eliminating fixed interest rates is clearly a disservice to the student borrower. The proposed legislation would cost a borrower with a $20,000 loan balance an estimated $7,800 in additional interest charges over the allotted repayment period. The Higher Education Act was created to strengthen educational resources and provide financial assistance for post secondary education. The legislation that was designed to keep the student the priority is the same legislation that this reform effort is contradicting.
Presidential candidate John Kerry formally stated, "This proposal would leave thousands of struggling students with thousands of dollars in higher interest payments on their student loans. This will do a great service to lenders, but cause great harm to students."
American Collegiate Financial Services (ACFS), a student loan consolidation company in St. Petersburg, Florida pledges to do what is in the best interest of the borrower. Casey Jennings, a spokesperson for ACFS said, "Occasionally, consolidation is not in a borrower's best interest. Depending upon certain circumstances some student loans may be forgiven. If there are other factors to consider, we go to great lengths to identify these situations and inform the borrower of their options."
For more information on federal student loans visit: www. federalloanhelp. com. ACFS provides consolidation information at: www. OneStudentLoan. com. To speak with an ACFS Loan Specialist call 1(800)304-1471.
CONTACT INFORMATION:
Janel Landis
American Collegiate Financial Services
(800) 304-1473 x 1007
(727) 644-5664
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