I am being constantly harrassed by Student Loan Consolidation outfits. What is the ripoff or horror of this?
How can a person consolidate their loans clear down cheaper than the federal government originally offers it for? There must be a catch for these companies to make money, right? Are these set up like credit cards, where you have to pay on time everytime and if you miss a payment and try to make up for it by sending extra, they’ll add on their fee and raise your interest to whatever they want to charge? Does it lock up everything you own as well?
I signed up for a consolidation loan last year after extensive research. They all offer the same interest rate which is set by the federal government. The only differences between the hundreds of consolidators is that some offer discounts of .25 to 1 percent for paying on time or setting up electronic payments. Just check who offers the best deal and sign up. Once you have consolidated, which you don’t need to do until you graduate, you can throw all that mail from other consolidators in the trash without even looking at it.
