Private College Student Loan

Best student loan consolidation. Mine after 5 months just turned me down!?

I used education direct in may and all was well, recieved notification they had received loans and payments to those loan holders then all of a sudden they said no, and that payments had been returned just last Thursday(long after july deadline to lock in good interest rates! Now what do I do?)

Public Comments

1. Unfortunately, a lot of shady characters have entered the student loan consolidation market. It's good to check out the reputation of a consolidation company before you apply with them. Sallie Mae is the oldest and largest consolidator of student loans. They have a lot of good info and a calculator that shows you what your payments will be with the different repayment options at http://www.salliemae.com/after_graduation/manage_your_loans/consolidate_student_loans/student_loan_consolidation.htm
2. Be thankful that your consolidation with this company didn't go through. There are many reputable lenders out there who offer Federal Consolidation Loans -- but I do not count Educational Direct among them. They employ a lot of trickery in their direct marketing; I always hope my students have nothing to do with them... For your own edification, have you asked why they turned you down? Remember: Federal consolidation loans require no credit check -- so no consolidation lender should have turned you down for credit reasons. There are plenty of companies that trick their borrowers into obtaining private consolidation loans. You *don't* want this -- the rates are not set by the federal government and, being private, the loans typically offer none of the protection & benefits of the federal program. First, go to http://www.nslds.ed.gov and make sure that your loans weren't, in fact, consolidated. Use this website to determine who holds your loans at this moment (things change -- it may not be the same lender that held them 5 months ago). Once you have this information, pick a new lender with whom to consolidate. Sallie Mae and Citibank are the #1 and #2 student loan lenders, respectively. Either one would be a fine choice. They're well-established companies that offer competitive benefits and are technologically advanced. If you're interested in doing some more research, check out this list of Top 50 Lenders: http://finaid.org/loans/biglenders.phtml (note that Educational Direct is no where on this list).
3. Check out: http://loanconsolidation1.blogspot.com They have good information on student loans, refinancing and loan consolidation. http://loanconsolidation1.blogspot.com