Student Loan Consolidation

[J Larsen]

I'm planning to consolidate this weekend, but I'm a little overwhelmed by all the offers I've received in the mail. I'm tempted to go with Nelnet, partly because of their 24 hour customer service, but I've never heard of the company before. Besides possibly saving a few pennies by shopping around, are there any big advantages to going with one company or another? Any particularly good or bad experiences? Thanks.

[ghost of miles]

I'm interested as well... I, too, have been deluged with offers, and I really want to consolidate my flexible-interest rate (which is very low) with my wife's higher, locked-in rate--overall, we'll save money.

[Chuck Nessa]

Be very careful. I don't remember the details but my daughter discovered you loose some "government protections" with some of these plans.

[scottb]

What's frustrating to me is that my wife and I don't qualify for consolidation yet they still call us at least 10 times a week. (not kidding) And that with us asking each to take us off their call list.

Anyway, be careful when consolidating with another person (ie your spouse)

Most loans are forgiven in case of death (God forbid), but if you've consolidated the survivor is still responsible.

[mgraham333]

Keep in mind too that on most of these consolidation plans you get a (sometimes weighted) average of the interest rates that you have on your current loans. At least that is what I recall from several of the offers I have seen.

For me I have a little left on the higher rates and a little more left at the low rate. So consolidation isn't a real benefit for me.

Of course there may be better deals out there now. I simply trash all the offers without even looking at them. I should be done with my loans in the next 18 mos. anyway. It'll be great to write those checks to Mosaic instead of Sallie Mae.

[ghost of miles]

Up.

[mgraham333]

another knock against.... at least for me:

My current rate includes a 2% discount for good payment history.

The rates are going up by 1.93%. When you consolidate you loose any discounts you have. So I would be giving up 2% to save 1.93% so it doesn't make much sense. Unless of course the rates go up again next year. They might. But at this point I think I'll stay put. I don't have that much more to pay off anyway.

[Jazzmoose]

Interesting...there was a story on this topic on the local news last night, and apparently they are most definitely NOT all the same, and there have been a lot of complaints on some private companies playing fast and loose with their promises and what they actually deliver.

Here's a link to the story...

[Noj]

Not sure about other schools, but my school (Art Center College Of Design) advised that we ABSOLUTELY DO NOT consolidate or change our loan agreement for any reason. I was told the original deal cannot possibly be improved upon, and every offer to change it will result in paying more if accepted, whether it be the long run or short term.