Department of Education to Disallow Some William D. Ford Consolidations

Business Wire, March 23, 2006

TAMPA, Fla. -- The Department of Education has announced that, beginning March 31, 2006, they will restrict the right's of students to consolidate their William D. Ford loans. Currently, any borrower that has a William D. Ford student loan (also known as a Direct Student Loan) and one other Federal student loan, can consolidate their student loans with any eligible lender. After March 31st, the Department of Education will restrict which lender that each borrower can consolidate their loans with.

"The Federal Government has announced that, after March 31st, all Two-Step Student Loan Consolidations that are not complete will be invalid," said Michael Babb. "We believe that this change in regulations severely restricts the consolidation options available to federal student loan holders because the borrowers will not be allowed to pick who they want to consolidate their loans with."

The pending Department of Education restrictions will severely limit the choices borrowers have when it comes to consolidating their student loans. This limited choice means borrowers may not get all the benefits available to them through the free Federal Student Loan Consolidation program.

"Even though it is a Federal program, not all consolidation packages offer the same interest rate reduction," added Babb. "To ensure that eligible borrowers receive the best interest rate for their consolidation loan, we are encouraging borrowers to do their research and work with a consolidation company that offers the best benefit package. We are also encouraging all borrowers to find a company that offers a secure, e-signature application. Following these two simple rules will ensure borrowers that they are getting the best interest rate available and that they will meet the upcoming March 31st deadline."

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.