Generation Debt

FOR IMMEDIATE RELEASE
Media:
Alex Slater
aslater@gloverparkgroup.com
202.337.0808
Tracy Neumann
tneumann@collegeloan.com
858.716.1503
CONGRESS VOTES TO GIVE STUDENTS, FAMILIES
MORE STUDENT LOAN OPTIONS
Repeal of Single Holder Law Allows Borrowers to Secure Best Consolidation
Loan Deal, Customer Service, Ahead of July 1 Rate Hike
SAN DIEGO (June 15, 2006) – Congress today moved to provide students and parents with better options for consolidating their student loans by voting to repeal the single holder rule – a law that had restricted many students and parents from consolidating their loans with the provider that offered them the best borrower benefits and customer service. The repeal of the law was included in the supplemental spending bill passed by the House earlier this week and the Senate this morning. The President is expected to sign the bill into law as early as today.
The repeal of the law – a move long advocated by student and consumer groups - comes two weeks before the July 1 increase in student loan interest rates and provides borrowers with the opportunity to shop around for more attractive borrower benefits and better customer service. Previously, borrowers who had all their loans with a single provider were only allowed to consolidate with that company.
By consolidating their loans and locking in current low fixed rates the average borrower can save $3,245. Today’s move in Congress allows all borrowers to shop around for additional benefits offered by student loan providers. College Loan Corporation offers a 0.25% rate reduction for all borrowers who enroll in automatic payments, as well as a cash rebate for borrowers who make payments on time for nine consecutive months.
“This is yet another motivator for all those with student or parent loans to consolidate them before the July 1 deadline to lock in low fixed rates and attractive borrower benefits,� said Mark Brenner, vice chairman of College Loan Corporation. “The repeal of the single holder rule ensures that students and parents can shop around for the borrower benefits that best fit their needs. In the case of College Loan Corporation, we combine award-winning customer service with a cash rebate that can provide graduates with welcome financial relief at exactly the right time in their careers.�
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Consolidation provides more flexibility, allowing borrowers with high balances to extend their repayment terms up to 30 years - lowering their payments by as much as 50 percent. Borrowers also benefit from the convenience of a single monthly payment.
College Loan Corporation’s e-sign capabilities make applying for a consolidation loan rapid and secure by completing most of the paperwork for borrowers. The Company’s award winning customer service makes the process easier for students and families by offering dedicated loan consultants and a One Call Promise® which eliminates phone tag and resolves matters quickly.
Borrowers can call CLC's free hotline 24/7 at 1.800.2COLLEGE to determine their eligibility for Consolidation Loans, discuss borrower benefits and the advantages of consolidation with expert loan consultants or start an application – 97% of calls are answered within seconds. Consolidation applications must be received by June 30 in order to qualify for the current historically low rates.
More on College Loan Corporation’s Borrower Benefits
College Loan Corporation offers borrowers who enroll in automatic payments a 0.25% rate reduction. In addition, borrowers who meet the minimum consolidated loan balance requirement of $50,000 and make payments on time each month for nine consecutive months will receive a cash rebate equal to 2% of their principal balance outstanding, up to $2,000. Borrowers who do not meet the minimum balance requirements but make payments on time each month for nine consecutive months will receive a cash rebate equal to 1% of their principal balance outstanding, up to $500. Contact College Loan Corporation for additional terms and conditions.
About College Loan Corporation
College Loan Corporation, headquartered in San Diego, is the nation’s seventh largest student loan provider, managing more than $9 billion in student loan assets. By offering innovative loan products and industry-leading customer service, the Company has helped make higher education possible for more than 600,000 students and families. More than 850 colleges and universities have designated College Loan Corporation as a preferred lender. CLC’s student loan hotline offers expert loan consultants 24 hours a day, 7 days a week at 1.800.2COLLEGE.