Sallie Mae Advises Borrowers to be Savvy When It Comes to Student Loan Consolidation
13 April 2006 - 8:11PM
PR Newswire (US)
RESTON, Va., April 13 /PRNewswire/ -- Along with their diplomas,
college graduates are likely to face a flurry of offers to
consolidate their student loans. (Logo:
http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a ) Before
consolidating, however, they should carefully weigh their decision,
says Patricia Scherschel, vice president of loan consolidation for
Sallie Mae, the nation's leading provider of education funding and
the largest consolidator of student loans. "Student loan
consolidation is an important financial option," says Scherschel.
"You want to make the right decision, so do homework before signing
on the dotted line." Scherschel offers the following tips for
borrowers who may be exploring loan consolidation. * Contact your
college financial aid office for recommendations and information on
reliable and trustworthy lenders. Because consolidation lets
borrowers extend their repayment up to 30 years, it is important to
choose a lender wisely. * Investigate the lender's borrower benefit
program. Many lenders, including Sallie Mae, will offer
interest-rate reductions for paying on time or using direct debit.
Also be sure to read the fine print of the benefit program being
offered, including if, when and how you qualify for the benefit, as
well as how you could potentially lose it. * Be cautious of the
word "free." While lenders are not permitted to charge borrowers a
fee to consolidate their loans, Consolidation Loans are not
interest-free. It is important to understand all of the costs up
front. * Keep on top of deadlines. On July 1, interest rates on
federally guaranteed education loans are expected to rise for the
second- straight year. Borrowers who consolidate at today's
interest rates -- the fourth-lowest in the 40-year history of the
federal student loan program -- could save hundreds, even
thousands, of dollars. "Consolidation is the key to avoiding a rate
increase," Scherschel says. "Once final exams are over, current
students and this spring's graduates should have a one-track mind:
getting their consolidation application in before midnight on June
30." For more information on loan consolidation, log on to
http://www.salliemae.com/consolidation or call 800/448-3533.
http://www.newscom.com/cgi-bin/prnh/20030617/SLMLOGO-a
http://photoarchive.ap.org/ DATASOURCE: Sallie Mae CONTACT: Erin
Korsvall of Sallie Mae, +1-703-984-5136 Web site:
http://www.salliemae.com/ Company News On-Call:
http://www.prnewswire.com/comp/827187.html
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