While many soon-to-be freshmen are making their final decisions on which college to attend next year, many other students are researching student loan consolidation lenders for the best options for their student loans , as federal interest rates may change on July 1, 2007.

It is important that borrowers scrutinize their student loan consolidation options, being careful to go beyond colleges' Preferred Lender Lists to compile a list of lenders that reflects their own particular preferences and needs, according to NextStudent, a leading Phoenix-based education funding company. When borrowers consolidate with NextStudent, they not only will lock in outstanding terms and benefits, but they also will simplify the repayment of their student loans with an easy-to-manage single payment and competitive interest rates.

Since there are so many lenders with varying degrees of integrity, customer service and incentives, it is essential that students and their parents do their homework before selecting their lender, instead of simply accepting a lender from a college's Preferred Lender List. NextStudent encourages borrowers to begin by visiting their colleges' financial aid office and asking for an expanded list of lenders in addition to the recommended lenders list that is so widely available at most schools. The next step is to invest a reasonable amount of time in speaking with representatives from each company and researching each lender before rendering a final decision.

NextStudent is committed to serving students and ensuring that they get the best funding package available. All borrowers are personally assigned their own Education Finance Advisor to answer any questions and guide them through the student loan consolidation process, from start to finish. Borrowers oftentimes qualify over the phone in as little as a few minutes.

Since the government sets the base interest rates on consolidation loans, the only true differences among student loan consolidation lenders and their offerings are the incentives. In its effort to offer some of the most competitive products in the industry, NextStudent offers borrowers a 1 percent LOCKED RATE reduction once 36 consecutive on-time payments have been made. This interest rate reduction is locked for the life of the loan. NextStudent also offers an incentive package with a .25 percent interest rate discount for paying via Auto-Debit, as well as a 2 percent discount after 36 on-time payments (not locked).