Barry Said:

Student Loans - what happens when they are sold to another company?

We Answered:

The "incentives" that lenders offer you to get you to consolidate are always subject to change, although most lenders will not do this because they want to keep your business. Typically if a loan is sold all of the terms will remain the same (the interest rate without any incentives has to stay the same). It is possible that they can change, but very unlikely. In the 2 years that I have worked for a student loan servicer and seen many lender sales I have never seen somebody lose an incentive only because of that. If it switched lenders and they ignored the correspondence from the new company so made their payments late...well thats another story!

Matthew Said:

student loan consolidation?

We Answered:

Consolidation loans often reduce the size of the monthly payment by extending the term of the loan beyond the 10-year repayment plan that is standard with federal loans. Depending on the loan amount, the term of the loan can be extended from 12 to 30 years. (10 years for less than $7,500; 12 years for $7,500 to $10,000; 15 years for $10,000 to $20,000; 20 years for $20,000 to $40,000; 25 years for $40,000 to $60,000; and 30 years for $60,000 and above.) The reduced monthly payment may make the loan easier to repay for some borrowers. However, by extending the term of a loan the total amount of interest paid is increased.

http://loan--house.blogspot.com/2008/03/…

In certain circumstances (for example, when one or more of the loans was being repaid in less than 10 years because of minimum payment requirements), a consolidation loan may decrease the monthly payment without extending the overall loan term beyond 10 years. In effect, the shorter-term loan is being extended to 10 years. The total amount of interest paid will increase unless you continue to make the same monthly payment as before, in which case the total amount of interest paid will decrease. The interest rate on consolidation loans is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8 of a percent and capped at 8.25%.

http://loan-house.we.bs/loanconsolidatio…

If a student consolidates their loans before they enter repayment, the interest rate used is the lower in-school interest rate. Thus, although the rounding up of the weighted average can potentially cost the student as much as 0.12%, a student who consolidates before entering repayment can save as much as 0.6%, a substantial net savings. (The in-school interest rate is 1.7% plus the 91-day Treasury bill rate from the last auction in May. During repayment, the interest rate is the 91-day T-bill rate plus 2.3 %.) This loophole has been confirmed by an excerpt from the Federal Register and direct correspondence with the US Department of Education. Additional details can be found in the interest rate loophole section.

Good Luck...

Calvin Said:

Student Loan Consolidation Help Please!?

We Answered:

The only consolidation you can trust is your local bank or credit union. Some loans will allow you to go back to grad school but only if your payments have been in full and on-time..

Dorothy Said:

Where can I find information on student loan consolidation, both private and federal?

We Answered:

No, there is not one lender who could or would take on that mix of student loans. Consolidate the Federal loans and leave the private ones as is.

Fred Said:

Where can I get some information about student loan consolidation fraud?

We Answered:

http://search.bbb.org

It is the Better Business Bureau website!! Try there!!

Rita Said:

Where can I find information on the current federal student loan consolidation rate???

We Answered:

By law, lenders are required to use the same interest rate formula for Consolidation Loans. However, many lenders offer interest-rate reductions for paying on time or via direct debit. It is important to read the fine print and understand how you become qualified for or disqualified for a lender’s borrower benefits programs. Beyond savings, you should consider customer service, flexible repayment options, online account access and applications, reputation and industry experience when selecting a lender.