What Is The Best Student Loan Consolidation Company?
Jul 05, 2009 in
Student Loans
Recently, I consolidated my student loans (undergrad, grad school loans). After I received the final break down, it appears that I will be paying double over the 25 year pay back period even with a 6% interest rate. This is ludicrous and certainly NOT what the agreement stated. I need to find a better company with better rates and soon.
Any suggestions - help!!! This company is really not the best and I plan to change soon. Send links and your advice on how they have helped you!
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3 comments
Sallie Mae on July 5, 2009 at 7:02 am
When you consolidate your loans and extend the repayment period to 25 yrs (instead of the standard 10 yrs on federal loans) this increases the total amount of interest you pay over the life of the loan. Credit cards and other loans work the same way. Remember, the monthly payment is just the *minimum* you need to pay. Paying more than that each month will reduce the total interest you pay on the loan.
You federal loans can’t be “reconsolidated” unless you have a new (unconsolidated) loan to add to the amount.
Sallie Mae is the largest lender and consolidator of student loans and they offer a lot of great info on their site, including an FAQ and a calculator so you can see what your payments will be.
student loan consolidation information: http://www.salliemae.com/after_graduatio...
reconsolidating student loans: http://www.salliemae.com/after_graduatio...
Financial Aid Podcast on July 5, 2009 at 8:32 am
If it’s a federal consolidation and the loan terms don’t match your promissory note, contact the FSA Ombudsman’s office to dispute the loan.http://www.ombudsman.ed.gov/about/contac…
o on July 5, 2009 at 9:43 am
I use “American Educational Services”http://www.aessuccess.org/index.html