Best Student Loan Consolidation Deals

[lvScRb23]

Use this thread to report on, and discuss, the best loan consolidation deals.
You can find succinct rate and term information in the quick summary below
Note that this thread is for loan consolidation, not original loans (i.e., for your upcoming semester).
Feel free to add to the list below.
FAQ
Q: What are the benefits of consolidation?
A:
1) lenders offer incentives for consolidating loans with them as listed above.
2) consolidation loan interest rates are fixed at the rounded weighted avg of your variable rate loans. Good to lock in the low rate loans before they increase in July.
3) at the time of consolidation it's possible to choose new(longer) repayment plan which will reduce monthly payments and allow you to take advantage of low student loan interest rates. (make smaller payments on SL and use the money to pay off higher rate loans)
Request for info: if you had some negative experience with any of the student lenders please post your story here so the others can avoid the problem.
Please post links and specifics to any other good loan consolidation programs here and see the other threads (like the one below) for more general loan consolidation strategies.
If you are having a problem with your federal student loan, contact the FSA Ombudsman at the US Department of Education. The FSA Ombudsman is dedicated to helping students resolve disputes and other problems with federal student loans. The FSA Ombudsman will research your problem in an impartial and objective manner and will try to develop a fair solution. You can contact the FSA Ombudsman by phone at 1-877-557-2575 or 1-202-377-3800, by fax at 1-202-275-0549, by mail at U.S. Department of Education, FSA Ombudsman, 830 First Street, NE, Fourth Floor, Washington, DC 20202-5144, or by email at [email protected].
You can check the status of your consolidation at this link.

Student Lending Works - Watch News Clip
For Ohio students/residents:
.25% immediate interest rate reduction for auto debit
1.5% interest rate reduction that is PERMANENT after 36 months
or
6% principal reduction immediately that is PERMANENT after 36 months
For non-Ohio students/residents:
.25% immediate interest rate reduction for auto debit
1% interest rate reduction that is PERMANENT after 36 months
or
3.33% principal reduction that is PERMANENT after 30 months

Next Student
.25% immediate interest rate reduction for auto debit.
They offer three different plans in addition to the .25% auto debit:
1: 1% reduction after 36 months of on time payments is locked in unless you miss 6 payments-in that case gone forever. OR:
2: .375% reduction after 6 timely payments. Plus after 36 months of timely payments an additional 1%. NOT PERMANENT: one default and gone forever. OR:
3: 2% reduction after 48 timely payments NOT PERMANENT.

ScholarPoint
.5% immediate interest rate reduction for auto debit
1% interest rate reduction after 24 monthly payments. This incentive lost for ever if you miss single payment within 14 days of dou date.
Minimum Consolidation Amount: $10,000 (per Craig, 12/9/06)
Not locked in.

College PayWay
.5% immediate interest rate reduction for auto debit
1% interest rate reduction after 12 monthly payments NOT PERMANENT

NelNet
.25% immediate interest rate reduction for auto debit
3.33% principal balance (NB: not interest rate) reduction after 30 monthly payments--NOT PERMANENT
(or 1% interest rate reduction after 36 monthly payments)
WARNING: In Sept. 2006 an Inspector General report found that NelNet used a scheme to claim illegal government subsidies of > $250 million.

T.H.E.(aka Northstar)
.75% immediate annualized monthly credit, roughly equivalent (see below) to a .75% interest rate reduction
no further reduction for anything else, ever
Most others (including Graduate Leverage, CFS, Access Group, Student Loan Xpress & AES/Keystone)
.25% immediate interest rate reduction for auto debit
1% interest rate reduction after 36 monthly payments
Note that (nearly?) all lenders give .6% reduction when you consolidate during a grace period

LEGAL UPDATES:
Several lenders have come under legal review for corrupts practices including the following:
Student Loan Xpress - http://news.yahoo.com/s/ap/20070410/ap_on_bi_ge/student_loan_probe, http://biz.yahoo.com/ap/070409, http://www.newamerica.net/blogs/2007/04/stock/student_loan_probe.html?.v=7&.pf=loans
Citibank - http://news.yahoo.com/s/ap/20070410/ap_on_bi_ge/student_loan_probe
Nelnet - http://qconline.com/archives/qco/display.php?id=333963
Sallie Mae- http://www.ft.com/cms/s/00f6592c-e84f-11db-b2c3-000b5df10621.html
Consolidate with these lenders AT YOUR OWN RISK! For information about the illegal activities:
http://www.msnbc.msn.com/id/17644168/
http://www.wlwt.com/education/11811547/detail.html

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Members don't see this ad.

 

[Twitch]

Good list to start!

Somethings to ponder/ask lenders (and add to the list):
1) What %age of borrowers are able to utilize the incentive offered.
2) What if the borrower makes multiple payments in a month - does this count as a payment? So if you're montly payment is $200, can you make four $50 payments in a month? If it does (and I doubt it) then it may be a way to reach the interest rate reduction quicker.
3) Does economic hardship deferrals/forebearance make the incentive go away?
4) What if your loan gets sold, or they get bought out - do your terms stay the same (i.e. will you still get the IRR after x months)?

 

[It'sElectric]

So you understand....there is very little need to consolidate any future loans and loans from after July of 2006, since the interest rate is now fixed at 6.8% for stafford loans.

Simply choose the right lender for you right out of the block and keep all of your loans with them. Thus, you have absolutely no need to consolidate your loans.

 

[future_MD_doc]

http://www.elcloans.com
or http://www.educationalloancompany.com/consolidation.htm

I found that this company has some of the best borrower benefits depending on your situation. Good service as well.

 

[Twitch]

http://www.elcloans.com
or http://www.educationalloancompany.com/consolidation.htm

I found that this company has some of the best borrower benefits depending on your situation. Good service as well.

Their benefits don't kick in until 24 to 48 months for IRR, and their ach is 0.5%. Not a great deal.

 

[okbye]

So you understand....there is very little need to consolidate any future loans and loans from after July of 2006, since the interest rate is now fixed at 6.8% for stafford loans.

Simply choose the right lender for you right out of the block and keep all of your loans with them. Thus, you have absolutely no need to consolidate your loans.

Not true. Why pay 6.8% when repayment incentives can reduce it to 5.3%? (or whatever the reduction is on plan you chose)

 

[It'sElectric]

Not true. Why pay 6.8% when repayment incentives can reduce it to 5.3%? (or whatever the reduction is on plan you chose)

If you choose the right lender initially, you can receive these exact same incentives. My simple point is that it's important to research, choose an appropriate lender right away, and you should not have to consolidate. The only real exception would be if you want to combine grad plus loans with staffords, or something else along those lines.

One more time: choose the right lender, no need to consolidate.

Lots of consolidations come with fine print, so be careful.

 

[okbye]

Yes, you do have to be careful but I don't know of any lender who offers an original loan with anywhere near the reductions you can get from a consolidation.

 

[Twitch]

Yes, you do have to be careful but I don't know of any lender who offers an original loan with anywhere near the reductions you can get from a consolidation.

Here are some:

AAMC Medloans is at 6.5% during deferment (inschool+residency+fellowship) on staffords and 5.05% during repayment without consolidation. As a matter of fact you can't get this deal if you consolidated.

Another example, THE gives you 1.3% off (so 5.5%) on staffords during repayment but they'll only give about 0.75% if you consolidated (versus originating the loan with them).

 

[It'sElectric]

Thank you for providing the examples, Twitch.

Just find the right lender initially, and there are very, very few reasons to ever consolidate.

 

[okbye]

Most consolidations offer 1.5% off or better. Take the best deal you can find, whether it's with your original lender or a consolidation. But if you already have your loans and are looking for a consolidation it doesn't really matter what someone offers on original loans.

 

[It'sElectric]

Most consolidations offer 1.5% off or better. Take the best deal you can find, whether it's with your original lender or a consolidation. But if you already have your loans and are looking for a consolidation it doesn't really matter what someone offers on original loans.

The T.H.E. offers the 1.3% off immediately upon repayment. Every other consolidation I've ever seen doesn't start the reduction until you've made 2-3 years of on-time payments.

 

[blanche]

If you run the loan calculator on the lenders' sites also, it appears that the immediate benefit that you get from T.H.E. really makes a difference in the long run. For me, it came to almost $10K all things equal. (I thought that it wasn't such a good deal because the rate was lower than the others, but when you calculate the immediate benefit AND the fact that they are forgiving in giving you the benefit back if you are late on a payment, I think it's a good deal)

 

[It'sElectric]

If you run the loan calculator on the lenders' sites also, it appears that the immediate benefit that you get from T.H.E. really makes a difference in the long run. For me, it came to almost $10K all things equal. (I thought that it wasn't such a good deal because the rate was lower than the others, but when you calculate the immediate benefit AND the fact that they are forgiving in giving you the benefit back if you are late on a payment, I think it's a good deal)

Exactly how I've looked at it.

 

[magicrat]

The Loanster
.25% auto debit and-
2.00% rate reduction after 36 on-time payments NOT PERMANENT(one-time "repair" feature)
OR
.50% for auto debit and
1.00% rate reduction after 12 on-time payments NOT PERMANENT(one-time "repair" feature)

Actually, both programs consist of permanent benefits . The one-time repair is for the payments towards earning the permanent benefits. Essentially cutting in half the on-time requirements for earning the permanent benefits.

 

[bonpractice]

Someone recently added a Best Consolidation Programs post. Some of the terms of theLOANSTER Consolidation program in that post were wrong.

The actual program terms are as follows:

MAXSAVER​

Best overall APR if planning to keep loan more than 14 years​

2.25% Combined permanent interest rate reduction
0.25% Auto-Debit rate reduction
2.00% On-Time rate reduction
Applied after the first 36 required payments are made on-time
(within 15 days of due date).
Permanent - Once On-Time Benefits are earned, they can not be lost for late payments.
Deferment/Forbearance does not affect the borrower benefit package.
(i.e. Borrower makes first 3 payments on-time and then goes into deferment. Once back in repayment, borrower makes payments 4 through 36 On-time to earn 2.00% rate reduction.)

QUICKEARN​

Best rate for those who expect to pay off their loans in under14 years​

1.50% Combined permanent interest rate reduction
0.50% Auto-Debit rate reduction
1.00% On-Time rate reduction
Applied after the first 36 required payments are made on-time
(within 15 days of due date).
Permanent - Once On-Time Benefits are earned, they can not be lost for late payments.
Deferment/Forbearance does not affect the borrower benefit package.
(i.e. Borrower makes first 3 payments on-time and then goes into deferment. Once back in repayment, borrower makes payments 4 through 12 On-time to earn 1.00% rate reduction.)


For more information on theLoanster's Federal Consolidation Program please visit http://www.theLOANSTER.com

 

[UserNameNeeded]

Nevermind.

 

[mooky]

hi,

i went to a seminar given by Student HELP and I am leaning on using them to consolidate my loans. I was really impressed by them. Does anybody have experience with this company?

 

[capitaltocapita]

I consolidated w/ Student Help. They beat offers I had from almost every lender, including Grad Lev, who was very visible at my med school. I heard about them from a med school colleague who had used them and raved. Easy to deal with. Looked alot around other blogs. Good source of info.

 

[Slippermen]

Hope no one is late a single time over the life of the loan. Here is the small print from student Help....

2 To retain this benefit, consecutive, on-time payments must continue for life of loan


And you even lose your ACH benefit for good if it gets rejected a single time


3 If ACH is rejected once, benefit will be lost

 

[Slippermen]

Hope no one is late a single time over the life of the loan. Here is the small print from student Help....

2 To retain this benefit, consecutive, on-time payments must continue for life of loan


And you even lose your ACH benefit for good if it gets rejected a single time


3 If ACH is rejected once, benefit will be lost

And even though it states deferment and forbearance doesn't effect benefits the word "consecutive," implies it most certainly does

 

[VuDOo]

I consolidated with Graduate Leverage and have received great service. Even if you don't go with them, it's worth getting their free loan consolidation assessment.

 

[Staring@theSun]

Does anyone have ANY Info on either the Studen Help loan consolidation co or The Loanster consolidation co. I've spent a lot of time researching the best rates and these 2 seem to be the best.

 

[okbye]

Does anyone have ANY Info on either the Studen Help loan consolidation co or The Loanster consolidation co. I've spent a lot of time researching the best rates and these 2 seem to be the best.

I couldnt find Student Help by googling but I looked at The Loanster. They are a broker and their lender is ISM, our old lender. So, your loan would be with ISM and that's who you would be dealing with. ISM has really good customer service and is pretty easy to work with. They self-service their loans now so your payments would be going directly to the lender. We had very few post-consolidation problems with them and the couple we had were quickly taken care of.