Student Loan Consolidation?
Asked by BI'm just about to graduate from a private college and have a good amount of debt (private and federal). I have been looking into consolidating with Sallie Mae (most of my loans are through them) and it seems like a good deal. However, I also get consolidation mailings from companies like NelNet and Student Loan Xpress and was wondering if anyone has dealt with them before. SM and the other companies all compute your interest as a weighted average so they seem pretty similar. Specifically, StudentLoan Express (a CIT company) says I can get a rebate AND deductions off of my interest rate when I do an automatic payment. I'm just wondering if anyone has used these companies and/or places with rebates. I don't need too much detail with interest rates and such because I understand all of those things (finance major) but anything else would really help. Thanks!
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Answered by Student Loans
It's good you’re looking at your options. There are some pros and cons of the various lenders. (full disclosure I work for one of them Student Aid Lending) First understand that the rates and programs are virtually all the same. The Dept. of Education came up and administers the consolidation program so the rate/payment/etc. are all the same from one lender to the next as they do not decide what your rate is the Dept. of Education does. Secondly you can not (and should not) combine your private and federal loans into one consolidation. If you do so you'll loose all the benefits (deferment, tax deductions, ect.) that come with your federal loans. In fact I wouldn't be in a rush to consolidate your private loans. Since many students have begun taking out private loans new programs are coming out late summer to offer you better rates and discounts on these loans so it would be good to wait till at least July. So what's up with the 1.85% off - Cash Back - 2% discount after 24 months??? Lenders are competing for your business by offering other bennies. All make good on their offers but all of them will offer you the same benefits, all offer cash back or rate discounts or both. The question is do you have to ask for them or do they just offer them to you. Understand one benefit may be better than another. What's more important to you, cash today or paying less interest money and lower payments for the life of the loan? Here's the break down Cash Back = Money Today Rate Discount = Less % Spent Cash Back & Rate Discount = A little of each Pick a lender you feel comfortable with. Someone you can call when you have a question and who you know will manage your account best. Remember they are all truly the same the question comes down to service. Good Luck.
It's good you’re looking at your options. There are some pros and cons of the various lenders. (full disclosure I work for one of them Student Aid Lending) First understand that the rates and programs are virtually all the same. The Dept. of Education came up and administers the consolidation program so the rate/payment/etc. are all the same from one lender to the next as they do not decide what your rate is the Dept. of Education does. Secondly you can not (and should not) combine your private and federal loans into one consolidation. If you do so you'll loose all the benefits (deferment, tax deductions, ect.) that come with your federal loans. In fact I wouldn't be in a rush to consolidate your private loans. Since many students have begun taking out private loans new programs are coming out late summer to offer you better rates and discounts on these loans so it would be good to wait till at least July. So what's up with the 1.85% off - Cash Back - 2% discount after 24 months??? Lenders are competing for your business by offering other bennies. All make good on their offers but all of them will offer you the same benefits, all offer cash back or rate discounts or both. The question is do you have to ask for them or do they just offer them to you. Understand one benefit may be better than another. What's more important to you, cash today or paying less interest money and lower payments for the life of the loan? Here's the break down Cash Back = Money Today Rate Discount = Less % Spent Cash Back & Rate Discount = A little of each Pick a lender you feel comfortable with. Someone you can call when you have a question and who you know will manage your account best. Remember they are all truly the same the question comes down to service. Good Luck.
