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Federal Loan Consolidation

Effective July 1, 2006 the variable interest rates on federal student loans for students in their grace period is 6.54%* For students in repayment the rate is 7.14%

By consolidating your federal loans you could potentially lock in a fixed interest rate as low as 6.625%.

Apply today to ensure that you will be able to lock in this year's lowest fixed rate with lower monthly payments

For loans disbursed between July 1, 1998 and June 30, 2006. Loans disbursed before this period have a slightly higher rate.

Recent Articles Regarding Consolidation of Student Loans

Forbes.com June 13, 2007

http://www.forbes.com/

John Hopkins University April 24, 2007

www.jhunewsletter.com

NBC News, Charlotte, NC April 12, 2007

www.prnewswire.com

Cleveland State University, April 30, 2007

www.csucauldron.com

National Financial Awareness Network, Inc., June 12, 2006

http://www.pr.com/press-release/12106

KRON San Franciso May 17, 2006

http://kron.com/Global/story.asp?S=4915628

Eligibility

You are eligible to consolidate all or any combination of your loans providing you

You have a balance over $10,000

Are separated from School (This does not apply for Parent Plus Loans)

You are in your Grace Period or in repayment

You have not consolidated before (This does not apply if you have a new federal loan to add to your already consolidated Loans)

You have multiple Lenders/Servicers.

You are not in default. (no payment made for 270 days)

Eligible Loans

The following loans are eligible for Federal Loan Consolidation with Collegiate Funding.

DSS- Direct Subsidized Stafford Loans

DUS- Direct Unsubsidized Stafford Loans

DPLUS- Direct PLUS Loans

DUCON- Direct Unsubsidized Consolidation Loan, including Direct PLUS Consolidation Loans

SS-Subsidized Federal Stafford Loans, formerly Guaranteed Student Loans (GSL)

US - Unsubsidized and Non-subsidized Federal Stafford Loans

NSL-Federal Nursing Loans

PERK- Federal Perkins Loans, formerly Nations Defense/National Direct Student Loans (NDSL)

PLUS- Federal PLUS (Parent) Loans

SCON- Subsidized Federal Consolidation Loans

UCON- Unsubsidized Federal Consolidation Loans

SLS- Federal Supplemental Loans for Students (formerly Auxiliary Loans to Assist Students (ALAS) and Student PLUS Loans)

Interest Rates

If you consolidate today, you can lock in an incredibly low interest rate for the life of the loan.

Consolidation loan interest rates are based on a weighted average of the rates on your existing loans. The lower your original interest rates are, the lower your consolidation interest rate will be.

Once your consolidation loan is disbursed, you'll lock in a weighted average of these low rates for the life of your loan. Consolidation will save you a significant amount of interest charges during the life of the loan.

The interest rate on your Federal Consolidation Loan is calculated on the weighted average of the current interest rates based on the loan disbursement date.

CURRENT STAFFORD RATES*
Loan Date	Grace Period	Repayment
7/06-6/07	6.80%	6.80 %
7/98-6/06	6.54%	7.14 %
7/95-6/98	7.34%	7.94 %
7/92-6/95	7.94%	7.94 %

LAST YEARS STAFFORD RATES
Loan Date	Grace Period	Repayment
7/98-6/06	4.70%	5.30 %
7/95-6/98	5.50%	6.10 %
7/92-6/95	6.10%	6.10 %

CURRENT PLUS RATES*
Loan Date	Repayment
7/06-7/07	8.50 %
7/98-6/06	7.94 %
7/95-6/98	8.10 %
7/92-6/95	8.25 %

LAST YEARS PLUS RATES
Loan Date	Repayment
7/98-6/06	6.10 %
7/95-6/98	6.50 %
7/92-6/95	6.50 %

*Interest Rates effective 7/1/05-6/30/06

Repayment Plans

Three repayment plans are available with Federal Loan Consolidation.

Standard Repayment Plan This plan allows for standard, equal monthly payments. The length of the term depends on the loan balance (see chart below). There is no prepayment penalty if you pay early.

2-Year Graduated This is a good option for recent graduates. Payments start out small for the first two years and gradually increase over the course of the repayment period. Selecting this repayment option may increase your overall interest costs.

Income-Sensitive This plan establishes payments annually based on your expected monthly income. Wage documentation must be provided before a repayment schedule can be determined. Selecting this option may increase your total interest costs over the term of the loan.

Extended Repayment If your loans exceed $30,000 you have the option of extending repayment over a 25 year term with either the fixed or graduated payment plan. If you have at least $40,000 in debt you qualify for a 25 year repayment plan.

Payment Terms

Loan Debt	Repayment Term
$10,000 to $19,999	Up to 15 years
$20,000 to $39,999	Up to 20 years
$40,000 to $59,999	Up to 25 years
over $60,000	Up to 30 years