Consolidation Loan

[Cynic]

There are a small but persistent number of posts about consolidation, who to consolidate with, who "has the best deals" etc.

 

After reviewing all the laws, and actual borrower records, I've decided that, at this point at least, what incentives and deals individual lenders offer simply doesn't matter. ALL federal student loans, including consolidation loans, (including but not limited to FFELP loans and William D Ford Direct Loans) have the following provisions:

 

1) that the loan can be transferred/sold to another holder at any time, and

2) that the current loan holder has the right to cancel or change incentives and benefits at any time, and

3) that nothing in writing from any lender will nullify federal law, including anything stating that they will not sell your loan or that you will get a certain incentive or benefit.

 

Here are the 4 entities that actually own well more then 75% of ALL federal consolidation loans in the US:

 

FFELP:

 

1) SLM/ "Sallie Mae"/ Student Loan Marketing Association and the companies they own.

2) Citibank/ "College Loan Corp"and the companies they own.

3) National Education Loan Network/ "Nelnet" and the companies they own.

 

FDLP:

 

Department of Education/ "Direct Loans" (currently serviced by ACS).

 

 

I would personally recommend avoiding myrichuncle.com, nextstudent.com, onesimpleloan.com, and other similar websites, and go directly to the folks these marketers will probably sell your loan to after you consolidate with them. The entities named above are not perfect, definitely don't promise the best deals, and are the least likely to sell your loan off once they get it (evidenced by their track record). I think that, although their incentives sure aren't the best offered, they are incentives you will likely actually get if you meet the requirements.