I have had a consolidation loan with Sallie Mae for a number of years. I have used up by forebearance time and have played the game from time to time where I sign up for automatic bill payment and before the payment is withdrawn, I switch back to online billing which makes my past due clock reset.

I read about Direct Loans on this forum and applied to consolidate my 2 Sallie Mae loans with them. I was approved but the interest rate is the same and my payment seems to be slightly higher and the term is 25 months longer. Is there any advantage to going with Direct Loans instead of staying with Sallie Mae?

Unless you have additional loans to add in, you cannot re-consolidate a consolidated loan.

The jumping back and forth could end up catching up with you. Accounts are audited regularly.

Even Sallie Mae should eventually catch on to that. Once they figure out that you've excessively exploited administrative forbearance to avoid repayment (thats what you're doing, BTW), they could excelerate, file a default claim (on the grounds that your knowing, intentional, and repeated exploitation of admin forb is evidence you don't intend to repay), and send you a Final Demand letter.

Also, keep in mind that every single time they put an administrative forbearance on your acount interest may be capitalized when it ends, increasing your principle balance and daily interest accruel.

If I take the Direct Ed Offer, I can get a way to start over and get out from under this thing legally. My only concern is that the payment is very similar in amount but it is for an extra 25 months. The advantage being that I have a level payment where as the Sallie Mae payment will go up in 60 months. This is my last opportunity to consolidate. I'm sad the interest rate is back up.

If your loan is already consolidated, you can't consolidate unless you have a loan to add to it.

True, unless

the FFELP lender has sent the guarantor a DAAR (Default Aversion Assistance Request) on the loan.

If you've already consolidated your interest rate will not change. You would only be eligible to consolidate through FDLP if SLMA has requested Default Aversion Assistance from the guarantor.

To rephrase my opening statement, I have had 2 loans with Sallie Mae, not a consolidation loan. I would pay them at the same time but they are separate loans with separate loan numbers.

Question: since you obviously don't intend to voluntarily repay the loans, why do you want to consolidate them?