Department of Education to Disallow In-School Student Loan Consolidations

Business Wire, April 13, 2006

TAMPA, Fla. -- The Department of Education has announced that, as of midnight, June 30, 2006, students that are enrolled in a college or university will not be allowed to consolidate their student loans. This regulation change means that all students that do not consolidate their Federal Student Loans before July 1st will see their loan interest rates increase from 4.7% to 6.8% while they remain in school.

"Ever since this announcement was made by the Department of Education, we have been working very hard to contact all prospective borrowers to explain the changes to the Student Lending laws," said Michael Babb, President of Academic Financial Solutions. "This pending legislative change can really put future graduates on shaky financial footing if they don't exercise their Federal right and consolidate their student loans before the July 1st deadline."

Babb and Academic Financial Solutions have three basic rules they recommend for students and their parents to follow regarding paying off Federal Student Loans:

1)Don't Take Your Eyes off the Calendar - with a deadline of July 1st, all student loan consolidation documents must be received no later than midnight, June 30, 2006.

2)Consolidate via E-Signature - Consolidate with a Company that has a secure e-Signature program. e-Signature cuts through the red tape and allows you to complete the consolidation process within a few minutes.

3)Don't Forget Your Credit Score - new graduates are going to lean heavily on their individual credit score as they go out and purchase a car, a home, or even obtain their own credit cards. Consolidating your Federal Student Loans is a great way to increase your credit score and increase your buying power.

"Our goal at Academic Financial Solutions is to help all students and their parents understand that spending a few minutes thinking about student loans today will save thousands of dollars when the loans are paid back tomorrow," added Babb. "With the amount of debt that students take on to complete their educations, we feel it is very important that they take advantage of every opportunity available to reduce their post-college student loan payments."

Based in Tampa, Florida, Academic Financial Solutions has saved Federal Student Loan holders millions of dollars by reducing their payments through consolidation. For more information on how to consolidate Student Loan debt, call Toll Free 1-866-416-6333 or visit their Website at http://www.AcademicFinancial.com.