According to NextStudent, a leading Phoenix-based education funding company, private consolidation loans are an excellent option for borrowers faced with repaying thousands in private student loan debt. Since federal funds rarely cover all college expenses, many students and their parents choose to take out private student loans . This money covers the gap between federal funding and the total college financial package.

When it comes time to consolidate many borrowers are familiar with the Federal Consolidation Loan Program. However, borrowers may not be aware that they can take advantage of private credit-based consolidation loans such as the Private Consolidation Loan just unveiled by NextStudent, with an interest rate as low as 6.33% APR for the first year.

For example, a typical loan of $40,000, where the borrower has chosen to make payments of principal and interest, with an interest rate of 6.705% APR, subject to change every calendar quarter, and with a loan term of 30 years, will have a payment of $258.25 (subject to change if the interest rate changes).

Many borrowers struggle to make huge payments shortly after graduation and find that once they consolidate -- significantly cutting their monthly payments and folding multiple student loans into one simple, manageable program -- they have a brighter financial future. Students and their parents may consolidate a minimum of $7,500 up to a maximum of $300,000.

Borrowers may qualify over the phone in just a few minutes with their personally assigned Education Finance Advisor and may review the status of their loan's progress online. Borrowers who have good credit, have not defaulted on their student loans, and are currently repaying or will shortly begin repayment may qualify.

In an industry where the standard repayment term is 12 years to 20 years, NextStudent borrowers have a generous 25 years to 30 years to repay depending on the amount of the loan. Students may take advantage of in-school deferment and may defer payments for up to 12 months following graduation. Another little-known benefit is that borrowers may opt to make interest-only payments for the first two years. Other features for which borrowers may qualify include: up to a 1.5 percent reduction in principal balance after 48 consecutive on-time payments; a .25 percent interest rate reduction if payments are made using auto-debit; and no or low fees. For most borrowers, these features ease their post-college financial burdens and allow students to plan for their financial future.

With excellent terms, benefits and repayment options, NextStudent's Private Consolidation Loan is an excellent tool for borrowers to manage student debt. Many borrowers already have opted to manage their student debt portfolio with NextStudent's Private Consolidation Loan and are currently reaping such financial benefits as reduced payments, significant savings, and a simple solution to their student loan hassles.

About NextStudent

NextStudent, federal lender code 834051, is dedicated to helping students and their families find affordable ways to pay for college. NextStudent offers one-on-one education finance counseling and has a portfolio of highly competitive education finance products and services including a free online scholarship search engine, federally guaranteed parent and student loans, private student loans, both federal and private student loan consolidation programs, and college savings plans.

The NextStudent Scholarship Search Engine, one of the nation's oldest and largest scholarship search engines, is updated daily, available free of charge, completely private -- and represents 2.4 million scholarships worth $3.4 billion.