GCO Education Loan Funding Corp. announced today that it has launched a private consolidation loan program as a complement to its array of educated borrower private student loan products. The educated borrower loans offer products for students and families at every phase of their education process, from K-12 through post graduate study. This new program will offer students up to a 45% reduction in their monthly payment amount in their first year of repayment."Students and families are faced with a tremendous monthly burden once their private loans enter repayment. We have designed our product to address this cash flow stress," said Robert Culnane, managing director of GCO ELF said in a release. He explained that GCO engineered this product to lower monthly payments in three ways. First, the firm structured a first-year interest rate that is well below market rates, minimizing the accrual of interest in the first year. GCO also provided borrowers with the option of making interest-only payments in the first 24 months. The firm also extended the loan term to thirty years. "With no penalty for early repayment, the borrower is provided with the flexibility they need in the early years, when cash flow can be tight," Culnane said.
The educated borrower private consolidation loan also offers a 0.25% interest rate reduction if the borrowers elect to have their monthly payment deducted from their checking account. Additionally, certain borrowers may be eligible for a reduction in their loan balance after 48 consecutive on-time monthly payments.