Consolidate Student Loan Broker

Andrea B says:

I am assuming these are federal student loans. Federal student loans (stafford, plus, etc) have to be serviced in accordance of what he US Dept of Ed says. This is what consolidastion does regardless of what company:

1. Locks in the current interest rate you have (rounded to the next highest 1/8%). If you have mult interest rates, you will get a weighted average.

Since you receive a lower interest rate during in school or in grace, it is wise to consolidate during your grace period, BUT at the end of your grace period. Since consolidations take 30-45 days to go through, it is wise to time your consol smartly. Apply for your consolidation 45 days before your first payment due date. This will ensure that you lock in your current “in grace” rate AND keep your full 6 month grace period.

NOW – here’s what you getting in the mail – SPAM

They can offer you a reduction for auto debit from your checking account (.25% – most student loan comanies do this anyways- consolidation or not)

They can offer a discount for on time payments.

The US Dept of Ed uses ONE company to service their loans. That company is William D Ford, The Direct Loan Program. Now YOU can choose to go through someone else, but you may face your loan being sold left and right – an how can you make on time paymwnts with that??

I worked for Direct Loans for 7 years. We are scrutized closely by the federal government. They made sure we serviced the loans correctly and fairly.

Whomever you choose, I would ask a million questions, read everything they give and remember that once you’ve consolidated, you cannot re-consolidate and you are locked in.

Direct Loans ph # 1-800-848-0979

knight01 says:

Andrea B has given some good advice. You should visit some of the online student loan consolidation sites and get some idea of what’s available and by whom. provides a short online pre-qualification form that you can then speak to an advisor about what is available to you.