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dylanthomas44 asked:
Also, do any of these organizations consolidate private loans?
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Tags: Consolidate Loans, Federal Government Organizations, Federal Loans, Government Loans, Private Loans, Student Loans
August 24th, 2008 at 4:04 pm
Sallie Mae (Student Loan Marketing Association) offers loan consolidation, as do any number of lenders. I would stay away from big banks like Citi, Bank of America, Chase, etc that offer consolidation. Stay with an outfit that only deal in student loan paper.
There are no “federal government organizations” per se that consolidate or make loans. The lenders that do are authorized by the feds, but are not government agencies in and of themselves. There are some state-run organizations, like the Ohio Student Loan Commission, Kentucky Higher Education Commission, etc. But nothing federal. The feds simply guarantee the loan; that’s all.
When you consolidate, be wise about what your getting into. There are a lot of offers out there to REDUCE YOUR PAYMENT BY 75%!!! for example. But what this does is extend the payment period to 25 and 30 years, thus making the actually repayment amount up to ten times what you actually borrowed. So be careful.
Don’t sign anything until you see the Truth In Lending statement which spells out the real deal. If you are confused, ask your banker or a knowledgeable friend or parent to look it over and help you make a good decision.
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