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Wachovia's Consolidation Loan Now Available to All Students and Parents With the Repeal of the Single Holder Rule RANCHO CORDOVA, Calif. — With two weeks to go before federal student loan rates change on July 1, Wachovia announced today that students and parents with federally insured education loans can now consolidate those loans and receive the lowest possible fixed rate available to them when they choose Wachovia – even if those loans are held by another lender. In addition, their fixed rates can be reduced by an additional 1 percent when students and parents consolidate with Wachovia. On June 15, President Bush signed into law the Senate's emergency supplemental spending package, H.R. 4939, that includes a provision repealing the single-holder rule for federally insured Consolidation Loans. Wachovia is uniquely prepared to assist students and parents with the consolidation process even when their loans are held by other lenders, and is staffed and trained to handle increased call volume and online applications prior to July 1. Effective July 1, the variable interest rates for Stafford Loans for students and PLUS Loans for parents will increase significantly. These rates are adjusted every July 1 and can climb as high as 8.25 percent for Stafford, and up to 9 percent for PLUS. Wachovia's Federal Consolidation Loan can lock in today’s low fixed rates for the life of the loan and cut monthly loan payments by as much as 50 percent. By acting before July 1, students who consolidate their Stafford Loans while in school or during their six-month grace period can lock in a fixed rate as low as 4.75 percent. Parents can lock in a fixed rate as low as 6.125 percent. “Now that interest rates are predicted to rise, it makes sense for students and parents to closely consider consolidation,” explained Ann Barnes, Vice President of Sales and Business Development for Wachovia Education Finance. “Anticipating this change to the single holder rule, Wachovia can not only offer the ability to complete and electronically sign an application entirely online, but the assurance that we can lock in the lowest possible rate prior to the July 1 deadline.” In addition to the upcoming rate change, June 30, 2006, will be the last opportunity for students to apply while currently enrolled in school. After that date, students will only to be able to consolidate after graduating or dropping below half-time enrollment. Students and parents who are considering consolidation are encouraged to act now. For more information about the Federal Consolidation Loan from Wachovia, call 1-888-953-4987 or visit wachovia.com/education. About Wachovia Education Finance About Wachovia |
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