SPECIAL DIRECT CONSOLIDATION LOAN – Be Informed of the Facts

The U.S. Department of Education has announced that it will offer a Special Direct Consolidation Loan to certain eligible borrowers effective January 15, 2012.

This special offer applies only to borrowers who have at least:

• One student loan currently held by the Department of Education (Direct Loan or a Federal Family Education Loan [FFELP]); AND
• One commercially-held FFELP loan.

Although the Department of Education has stated that this special consolidation loan program will benefit eligible borrowers, we want to point out some facts that you should know:

1. Savings – The Special Direct Consolidation Loan offers a .25% interest rate reduction in addition to a .25% interest rate reduction for those who sign up for auto debit.  NTHEA on the other hand offers a variety of on-time payment benefits which you may have qualified for or still may be eligible for in addition to our auto debit interest rate discount of .25% (or .75%, depending on your eligibility).  NTHEA borrowers are also eligible for our Early Loan Forgiveness program* (ELF) which will provide you a savings of up to $599 once you pay your account down to less than $600. If you have questions about our borrower benefits click here or contact our friendly Customer Service representatives at service@nthea.com or at 1-800-366-4372 to see how close you may be to qualifying for our benefits...don't risk losing them without knowing how much you may save.   
2. Customer Service – The Special Direct Consolidation Loan will be serviced by a large government contractor. As a result, you may find a lower standard of service than you are accustomed to receiving.  Higher Education Servicing Corporation (HESC) (servicer and administrator for North Texas Higher Education Authority) is a private, non-profit organization that was created to help students achieve a higher education and provide the best service possible; we are here to serve you.
3. Convenience – The process of consolidating loans can be cumbersome and inconvenient to borrowers.  It is also not uncommon for the consolidation process to take months to be finalized and for borrowers to get lost or confused in the process.  In addition, if you are already utilizing our auto debit feature or participating in an auto pay process through your bank, this special consolidation loan may not benefit you as much from a convenience standpoint.  If you are not utilizing our auto debit feature, please call us to sign up, and you will receive a .25% (or .75%, depending on your eligibility) auto debit discount as well.  

In summary, if you choose to consolidate your loans currently serviced by HESC, you may be jeopardizing savings, customer service and convenience.

If you are contacted by the Department of Education or by one of their government contractors about the Special Direct Consolidation Loan program, please call us at 1-800-366-4372 before applying for the program. Our friendly Customer Service representatives are standing by Monday-Friday from 8 am to 7 pm (CST) to help assist you.

*The ELF Program applies to all federal loans first disbursed prior to 7/1/08 and held by NTHEA at the time of forgiveness. The ELF Program is limited to one benefit per borrower; the borrower must be in repayment to be eligible and must have made at least one full payment on the loan(s). NTHEA reserves the right to discontinue or make changes to the ELF Program at any time without notice, but previously qualified loans will not be affected. Other terms and conditions may apply.