Federal Student Loan Consolidation – Choosing a Lender

2007-03-08 10:33:40

( Financial )



If you have more than one federal student loan and you are looking for a way to reduce your monthly payments, you may be considering a federal student loan consolidation. One quick search on the internet for student loan consolidation service will return hundreds of results. Add to this all the other advertisements of lenders scattered around asking you to consolidate your college loans with them. So how exactly do you choose a provider for your federal student loan consolidation?

One good way to tell if you are dealing with an honest lender is to look at what they are offering you. If the company promises to give you a fixed interest rate if you consolidate your federal student loans with them, take this as a warning sign. They should not offer you fixed interest rates as a special deal because by law it is a standard benefit on any federal student loan consolidation program.

Another benefit that you are entitled to is a 0.6% rate reduction if you consolidate student loans while you are in your loan grace period or still in school. When it comes to choosing rates and prices, get as many quotes as possible from various lenders so you can compare and pick out the best. Of course, this will also depend on how much you can afford to pay each month.

Additionally, there are no fees, no credit checks and no pre-payment penalties on a federal student loan consolidation. There are many lenders who advertise these benefits and make it appear as if they are offering something special. These companies may not have any good deals of their own.

Look for a lender that can provide other discounts and real special offers. You can also check the quality of their service and support. Finally, look at the lender’s reputation in the industry. You can ask around people you know who have already taken a student loan consolidation or check with the Better Business Bureau to find out if a company is credible.


All rights Reserved © Tradenet Services srl
Do not duplicate or redistribute in any form.