5 Responses to “What is the best way to consolidate your student loans?”

1. Sir O Says:
   September 26th, 2009 at 10:08 am

   I know that AES does (American Education Services). I went through them.

   Hope that helps!

2. Dan R Says:
   September 28th, 2009 at 7:25 pm

   Ask the financial aid office at the college you attend(ed) for a list of agencies they would recommend.

3. tkd Says:
   September 29th, 2009 at 6:34 am

   I went through the company that my loans were sold to. They were then sold to Sallie Mae. I think you could check with the company your loans are through and shop around a bit - go with the best interest rate.

   One key thing to remember - interest rates generally go up as of July 1st of each year, so try to consolidate your loans before then. Also, try to find a company that won’t fluxuate on the interest rates.

4. Stacey Says:
   September 30th, 2009 at 6:39 pm

   Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loanold loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.

5. Nessy Says:
   October 4th, 2009 at 12:34 am

   I have always used Sallie Mae. A lot of students are REALLY happy with their services. Their years of experience and lending allows me to trust them.

   Let me add some suggestions on how to lower your student loans too!

   1) Debt management programs may also reduce your payments, but they work differently. A debt management agency acts as a middleman between you and your creditors and tries to negotiate a reduction in the interest rates or fees on your loans. You then pay an agreed amount to the debt management or credit counseling agency, and they disburse the payment (usually minus a fee) to your creditors. Participation in a debt management plan usually shows up on your credit report, and may adversely affect your credit rating.

   2) Debt negotiation is the act of settling a debt for less than what you owe. You pay a part of what you owe to a creditor, and the creditor writes off the rest of the debt. Credit card companies often offer lump-sum settlements as a way to recoup part of their losses. While you end up owing less, a settlement will bruise your credit, badly. Worse still, third-party companies that offer debt negotiation have been known to disguise their practices as consolidation, and these companies frequently charge exorbitant fees while simply passing along payments to your original creditors, sometimes failing to even negotiate any difference in your repayment terms.

   ***The last thing to do is to refinance your loans to get the BEST INTEREST RATE possible!*** (This is done AFTER you consolidate your loans)

   5 steps to successfully refinance your loans

   STEP 1:
   Make sure your credit is in good standing. This is essential for getting more favorable terms.

   STEP2:
   Get a copy of your free credit report. This can be achieved online through one or all of the three major agencies, such as Equifax, Experian and TransUnion. Review it and make sure to fix any problems.

   STEP 3:
   Consolidate your federal loans and private loans separately. Compare rates from different lenders. Shop around, check the Internet, your bank, as well as your original lender.

   STEP4:
   Work with your lenders to refinance your loans. Extend your repayment period, lower your interest rate or consolidate your payments into one monthly bill according to your needs.

   STEP5:
   Research your options. You can consolidate private loans and federal loans together, but this usually yields less favorable terms.

   HOPE THIS HELPS!!!!

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