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WAGNER URGES STUDENTS TO APPLY FOR LOW-COST KeystoneBEST LOAN HARRISBURG, March 15, 2004 State Sen. Jack Wagner, a longtime advocate of making higher education financially accessible, today urged students to apply for PHEAAs KeystoneBEST student loan, the nations lowest-cost Stafford student loan. Through the KeystoneBEST program Pennsylvania students and their families will save more than $70 million annually, which includes over $1.5 million in savings for residents in the 42nd Senatorial district. As Wagner explained, whereas other Stafford loan programs typically charge up to four percent of the loan amount in up-front fees, PHEAA and its lending partners pay these fees on behalf of the student. A student borrowing $5,500 would save an additional $220 that he or she can immediately use for educational expenses. Also, a KeystoneBEST borrower can reduce his or her interest rate by one-quarter percent by choosing automatic direct debit of payments and receive an additional two-percent interest rate reduction upon making 48 consecutive on-time payments. One of my top priorities in the General Assembly is finding ways to make higher education more affordable for all Pennsylvania students, Wagner said. KeystoneBEST combines up-front savings with long-term reductions in interest, a combination which earns it the distinction of being the most affordable student loan in the nation. KeystoneBEST is part of the Keystone Family of Loan Programs. Since its 1995 inception, this program has saved Pennsylvania students and their families more than $220 million in up-front fees - - and more than $165 million in the last three years. The programs exceptional repayment benefits have the potential of saving students significantly more. Eligibility for KeystoneBEST requires that Pennsylvania residents must attend a school approved by the U.S. Department of Education (USDE), regardless of the schools location. Eligibility is also extended to out-of-state residents attending a USDE-approved school located within Pennsylvania. Although there is no income requirement, the applicant must be eligible for a standard Stafford loan. Interested parties must complete the Free Application for Federal Student Aid (FAFSA) to determine their student aid eligibility and apply for KeystoneBEST. Further information, as well as a list of participating lenders and an electronic FAFSA form, is available at www.aessuccess.org.
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