Wachovia's Consolidation Loan Now Available to All Students and Parents With the Repeal of the Single Holder Rule

RANCHO CORDOVA, Calif., June 19 /PRNewswire-FirstCall/ -- With two weeks to go before federal student loan rates change on July 1, Wachovia announced today that students and parents with federally insured education loans can now consolidate those loans and receive the lowest possible fixed rate available to them when they choose Wachovia -- even if those loans are held by another lender. In addition, their fixed rates can be reduced by an additional 1 percent when students and parents consolidate with Wachovia.

On June 15, President Bush signed into law the Senate's emergency supplemental spending package, H.R. 4939, that includes a provision repealing the single holder rule for federally insured Consolidation Loans. Wachovia is uniquely prepared to assist students and parents with the consolidation process even when their loans are held by other lenders, and is staffed and trained to handle increased call volume and online applications prior to July 1.

Effective July 1, the variable interest rates for Stafford Loans for students and PLUS Loans for parents will increase significantly. These rates are adjusted every July 1 and can climb as high as 8.25 percent for Stafford, and up to 9 percent for PLUS. Wachovia's Federal Consolidation Loan can lock in today's low fixed rates for the life of the loan and cut monthly loan payments by as much as 50 percent.

By acting before July 1, students who consolidate their Stafford Loans while in school or during their six-month grace period can lock in a fixed rate as low as 4.75 percent. Parents can lock in a fixed rate as low as 6.125 percent.

"Now that interest rates are predicted to rise, it makes sense for students and parents to closely consider consolidation," explained Ann Barnes, Vice President of Sales and Business Development for Wachovia Education Finance. "Anticipating this change to the single holder rule, Wachovia can not only offer the ability to complete and electronically sign an application entirely online, but the assurance that we can lock in the lowest possible rate prior to the July 1 deadline."

In addition to the upcoming rate change, June 30, 2006, will be the last opportunity for students to apply while currently enrolled in school. After that date, students will only to be able to consolidate after graduating or dropping below half-time enrollment. Students and parents who are considering consolidation are encouraged to act now.

For more information about the Federal Consolidation Loan from Wachovia, call 1-888-953-4987 or visit wachovia.com/education.

About Wachovia Education Finance

Wachovia Education Finance is the education loan division of Wachovia Corporation . Wachovia Education Finance does business with over 4,000 schools in all 50 states and several U.S. territories. Education loan products and financial aid services are available online at wachovia.com/education.

About Wachovia

Wachovia Corporation is one of the nation's largest diversified financial services companies, providing 13.4 million household and business relationships with a broad range of banking, asset management, wealth management and corporate and investment banking products and services. Wachovia operates as Wachovia Bank through 3,159 offices in 16 states from Connecticut to Florida and west to Texas, and, until merger integration activity is completed, will continue to be known as Western Financial Bank in California. Two core businesses operate under the Wachovia Securities brand name: retail brokerage in 49 states and in Latin America, and corporate and investment banking in selected industries nationwide. Globally, Wachovia serves clients through more than 40 international offices. Online banking is available at wachovia.com; online brokerage products and services at wachoviasec.com, and investment products and services at evergreeninvestments.com. Wachovia had assets of $541.8 billion, market capitalization of $90.2 billion and stockholders' equity of $49.8 billion at March 31, 2006.