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westy81585's avatar

Does anyone know a good company to consolidate student loans?

Asked by westy81585 (4311 points ) January 27th, 2010

I graduated in June, I have 5 separate loans of ranging from about 4k to 60k. Having to remember to pay 5 bills, and paying nearly $700 a month in student loans is becoming increasingly troublesome. I want to consolidate them but as to yet my efforts have failed. One loan is a government stafford loan, and to my understanding cannot be consolidated with the four private loans, but that’s fine. I’ve tried consolidating with two or three of the private loans (at least one of the banks didn’t offer consolidation), but was denied by each. As best I can tell they’re probably of the philosophy that if I declare bankruptcy right now, they would each only suffer a small amount, whereas if only one owned my debt, only one would suffer a lot.

Bankruptcy isn’t an issue, I can afford to make the payments. But it’s frustrating because I have no spare spending money, and I can’t put extra into the worst loans in order to pay them down quickly. And when you combine it with two credit card bills, the water bill, the gas bill, the phone bill, rent, car insurance, and renters insurance (and my mom wants me to get life insurance…)... I’m paying 13 bills a month, and frankly it’s getting irritating trying to remember them all.

Does anyone know or have a good experience with a bank or company that can consolidate these loans? I hear of all this help consolidating credit card debt of hundreds of thousands of dollars, and I can’t find a damn student loan consolidator >:O

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11 Answers

njnyjobs's avatar

Welcome to the real world! you think it’s bad now . . . wait till you get to form a family with kids. . . . you’ll need all the training and disciplne you can learn at this time.

Check out www.SallieMae.com

SeventhSense's avatar

There are many. Just pay close attention to the terms, rates and repayment schedules.

kevbo's avatar

I consolidated with Federal Student Aid. It’s good to do it when interest rates are low.

I’m also on a graduated repayment plan which means I make smaller payments now and gigantic ones when I’m rich and famous. (Also, you pay more in interest over the life of the loan.) FYI, if you are on a graduated plan and then go to a standard plan, you can’t go back.

@Simone_de_Beauvoir also mentioned some time back another plan that forgives the balance of your loan after you’ve paid for something like 25 years. Depressing, obviously, but maybe worth looking into.

rottenit's avatar

+1 for Sallie Mae we have consolidated several loans with them

westy81585's avatar

Sallie Mae is one of my student loans, and I’m pretty sure I tried, and was denied, a consolidation loan with them. I suppose I will try again in case I didn’t (it was a few months ago). But does anyone else know more?

SeventhSense's avatar

Sallie Mae- otherwise known as the United States of America Mortgage Company

jonsblond's avatar

Thumbs down for Sallie Mae. They are not very forgiving when you have trouble repaying your loan, but then who is. sigh

You may want to look into what @kevbo suggested concerning Simone’s advice from several months ago.

rottenit's avatar

@SeventhSense Sallie Mae is a private held corporation, although it does act as a broker for FFELP loans.

@westy81585 They can be a pain in the ass to deal with but, its going to be hard to find a bank that will risk that much unsecured debt.

SeventhSense's avatar

@rottenit
Yes I’m confusing it with Fannie Mae although Sallie was government run for basically its entire existence as well, until quite recently. It’s still basically a US Institution and all of its loans are backed by the government.
Fannie, Sallie Mae and Freddy Mac are all basically US MINT.

westy81585's avatar

@SeventhSense If they’ll consolidate my loans I don’t care if they’re run by Willy frikkin Wonka.

SeventhSense's avatar

…until they sell it to an Oompa Loompa

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