Student loan consolidation florida

Business Editors/Education Writers

MIAMI--(BUSINESS WIRE)--June 18, 2003

With Interest Rates Falling to Historic Lows, Florida

Educational Loan Marketing Corp. Borrowers Will See

Significant Savings by Consolidating Student Loans Now

With more American families than ever before relying on loans to finance the spiraling cost of a college education, the lowest interest rates in history for federal education loans should help.

Interest rates on most federally-backed Stafford loans drop on July 1 from 4.06% to 3.42%. Interest rates on student loans are recalculated each year on July 1 based on Treasury bill rates at the last auction in May.

At the same time, rates for loans to consolidate education debt may fall below 1% through additional incentives offered by Florida Educational Loan Marketing Corp. (FELMAC), a division of Southwest Student Services Corp.

Consolidation loans secured after July 1 can be locked in for about 3.5% for the life of the loan. Borrowers in Florida who consolidate after July 1 will receive a 2% discount to their loan interest rate after 24 months of on-time payments. Additionally, by using Southwest's SwiftPay(TM) auto-debit payment program, borrowers get an immediate discount of .25%. With these combined benefits, a $25,000 consolidation loan paid over 20 years at 3.5% could result in a savings of more than $6,000.

Parents who have secured Federal PLUS loans to pay for their children's education can also consolidate those loans and realize significant savings. Interest rates for PLUS loans fall from 4.86% to 4.22% on July 1.

"There's no better time than now to take advantage of these rates because the savings are considerable," said Southwest Chairman and CEO Vince Roig. "I would be very surprised if interest rates continue to fall like this in the years ahead."

College graduates are generally given a six month grace period to begin repaying their loans. However, interest will continue to accumulate, but at a lower rate than the regular repayment rate, 2.82% compared with the regular rate of 3.42%. Students consolidating their loans during this grace period can lock in the lower rates for the life of the loan.

In addition to consolidation loans, FELMAC and Southwest offer a diverse portfolio of education loans for both general education purposes as well as specific loans for targeted areas of study including nursing and teaching. For information about the full loan portfolio, contact Southwest Student Services Corp. at 800/367-2369 or visit www.sssc.com.

About Southwest Student Services Corp.

Southwest Student Services Corp. (Southwest) is a nonprofit corporation with assets exceeding $3 billion. Southwest serves schools and borrowers at the undergraduate, graduate and professional school levels who seek financial aid counseling, loan funding, origination, student loan consolidation and life-of-the-loan servicing through its affiliates, Arizona Educational Loan Marketing Corp. (AELMAC) and Florida Educational Loan Marketing Corp. (FELMAC). Southwest also creates turnkey School-as-Lender programs and partners with other lenders to facilitate loan and portfolio purchases, and customized referral programs.

Southwest is known nationally for providing innovative, cost-saving benefits and exceeding customer expectations. In the 20 years since the corporation's inception, Southwest and its affiliates have helped more than 1 million people in their efforts to attain their educational goals. Southwest has firmly established itself on the national stage, helping to shape the student loan industry through direct involvement in state, regional, and national financial aid and student loan organizations, and through affiliations and alliances with other leading corporations in the higher education finance industry.

For additional information about Southwest Student Services Corp., visit www.sssc.com or contact Kathleen Harris, vice president, at 800/367-2369 or e-mail KHarris@sssc.com.