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PASADENA, Calif., Jan. 9 /PRNewswire/ -- Law School Loans, a Juriscape company,
announced today that it is adopting measures aimed at assisting customers beat the
rate increase that will soon affect Americans holding student loans. A budget-cutting
law passed by the U.S. Congress on December 21, 2005, not only raises rates on federal
student loans in the near future, but makes the change permanent, thus imposing a
fixed, rather than adjustable rate on all Stafford loan holders. The adopted legislation,
which strips away borrowers' opportunity to consolidate loans on their own schedules
because of the fixed rate, will transfer a $40-billion price tag from the federal government
to loan holders.
With the little time left before the passed legislation becomes a federal law, Law School
Loans intends to roll out an aggressive educational campaign that will provide those
holding school loans with information on the recent changes. "Law students and alumni
are our primary customers, and they stand to lose a lot if they remain passive in the
near future," said Law School Loans CEO Harrison Barnes. "Therefore, we intend to
launch an expansive awareness program that will make borrowers aware of the recent
changes that will directly affect them."
Another important feature that Law School Loans intends to introduce is offering
increased one-on-one counseling to those who inquire about consolidation. This will be
accomplished by adding staff of counselors who can provide answers in live format, in
chat rooms, or over the phone. "What we have encountered is that many loan holders
have very general information about what's going on and how they can save,"
explained Barnes. "They also are not sure what the whole process of consolidation
entails. That is why we feel it's imperative to make loan counselors available to them in
real time."
The appeal of immediate student loan consolidation is further enhanced by the fact
that borrowers can lock in a lower fixed rate for the entire life of the loan, thus ensuring
that they will be saving thousands of dollars. With the time to lock in a lower rate
running out and the national media having joined the financial experts in recommending
immediate student loan consolidation, Law School Loans' CEO expects dramatic
increased interest from borrowers: "The window of opportunity to save a lot of money
by going ahead with loan consolidation is closing fast," said Barnes. "Those who do it
will benefit tremendously. Those who procrastinate, on the other hand, will end up
paying for the federal government budget cuts."
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