Compare Student Loan Consolidation

When you are considering to have have your loans consolidated, there are many lenders available for you to choose from. You should shop around to find one that fits your needs.

In choosing a company or lender for a student loan consolidation, you should excercise great care. It would help greatly if you start off by gathering a list of the comapanies that offer consolidation programs. Remember that your student loans can only be consolidated once and if you settle for the wrong one, there will be no turning back! So take you time to choose wisely before signing any documents.

Here are some important questions to ask when you’re comparing and choosing your lender:

- What is the repayment incentive?

- Is there a waiting period for the incentive? Do I have to earn it?

- What happens if I miss a payment?

- What happens if I request a deferment?

- How many of the borrowers actually receive the incentive?

- Is the lender knowledgeable and experienced?

- What is the credibility? Does your school support or recommend the lender?

- How is the accessibility? Are there online account access? A 24/7 customer service number? If you call them, will they give you information tailor to you, or will they give you some generic scripted response?

- How is their long-term commitment? Does the lender have a history of selling consolidated loan? The worse part in owing money, is when your lender disappears and some other company buys out your loan; suddenly you owe money to someone else.

If any of the above is not clear, start asking the lenders for more information. This is also a great way to gauge their service. If a customer service rep is having a hard time, or trying very little to help you understand their program, it may be a good cue to stay away. If they’re being such a hassle when you’re trying to give them money, imagine when you already owe them the money!

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