Private College Student Loan

Consolidating student loans?

I have $20,000 in federal student loans. I do not have private loans and all loans are through the same lender.I contacted my lender nelnet about consolidation. They stated "In response to the ongoing credit market downturn and recent regulatory changes, Nelnet has made the decision to discontinue federal consolidation services for customers wishing to consolidate with Nelnet. As of January 24, 2008, Nelnet will no longer consolidate federal student loans." Can I still consolidate with another lender? I prefer to send out 1 check instead of multiple checks a month. Any information and input will be greatly appreciated. Thank You

Public Comments

1. There are some major changes going on in the student loan market currently due to the economy and credit crisis. Many FFELP lenders such as NELNET are getting out of the business. Almost all that I am aware of are suspending consolidation as there is no profit in it at all. However, you can still apply for a consolidation either through a willing FFELP loan consolidator or the more likely case - the government's Direct Lending Program. Direct Lending will be around regardless. Now whether you should consolidate or not is another question. If you have variable rate Stafford loans then you should wait until after July 1st to consolidate them. It is expected that the 91 T-bill rate will fall 2-3 percent and the Stafford variable rates are set each July 1st for the remainder of the fiscal year. Any Stafford loans you took out after July 1, 2006 were issued as fixed rate, not variable and the interest rate is set at 6.8%. Consolidations are done on a weighted average of all loans so you may want to consider only consolidating variable rate loans in the new consolidation and leave any fixed rate aside and with their current lender. All of this advice is based on federal loans - not private. Hope this helps.
2. Practically any type of loan can be wrapped into the debt consolidation process. Common types include finance charges, late fees and overdraft charges, credit cards, personal loans, utility bills, medical bills, car loans, store cards, gas cards and back taxes. A debt consolidation loan<!--allows you to condense your monthly payments into a single, simple bill, while lowering your interest rates and helping you pay down your debts more quickly and easily. It is also an essential tool in avoiding the much more serious step of declaring bankruptcy. http://best-loans.awardspace.com/Loan-Consolidation.htm Unlike bankruptcy, in which debts are cancelled and your credit rating collapses completely, debt consolidation loans are essentially a type of refinancing, where several-->old loans are replaced with a new one that has more favorable terms. Your loan consultant will negotiate with creditors on your behalf, so you’ll no longer have to deal with harassing phone calls and daily mail.
3. Hello how are you? If you are thinking about consolidating...the first source you should check with is your original lender. Also for additional information regarding whether or not you should consolidate your student loans, can be found at my source. Good luck. Hope this helps.