Consolidating loans with department of education
In addition to their extensive in-house services, Sallie Mae also acts as administrators for their client’s Federal student loans.
Students considering loan consolidation should understand that the process often extends the overall life of their loans, and will result in an increase in total interest costs.Through their website students can find helpful information on Saving for College, Planning for College, Paying for College and Money Management Before, During and After College.Students will find that Sallie Mae can answer all of their education related financial questions, and can provide them with advice and counseling to help them better manage their financial future.The government offers consolidation through Direct Consolidation Loans.If a borrower is contacted by someone offering to consolidate your loans for a fee, you are not dealing with one of the Department’s consolidation servicers.They say one person’s misfortune is another’s gain, but the Department of Education doesn’t want that to be the case for tens of thousands of students affected by ITT Educational Services’ closure of 130 ITT Technical Institute campuses, no matter how good the deal sounds.
While now-former students of the for-profit college are likely exploring their options — seeking a discharge of student loans or transferring to a comparable school — a lack of information or misinformation could lead consumers to become victims of scammers. of Education reminded students on a recent webinar that they still have rights when it comes to their federal student loan debt.
The repayment options discussed above have been put in place to address the needs of students wishing to lower their monthly payments, without the necessity for writing new consolidated loans.
Students may still choose to consolidate their outstanding loans through another financial institution, in which case their new repayment plan will be governed by their new private lender.
Students considering private loan consolidation should refer to our section on Using Private Lenders to Consolidate Student Loans.
Sallie Mae is devoted to helping students navigate the murky waters of college finance.
“Please don’t pay anyone for help,” the Department said Wednesday, referring to companies offering to consolidate student debt or assist in applying for a closed school discharge.