Student Loan Primer - Student Loan Blog by studentlsc.com

End of borrower benefits when consolidating student loans? We think other wise.

We at the Student Loan Service Center have had a number of inquiries about the ‘end of borrower benefits’ after the recent legislation (H.R. 2669 College Cost Reduction Act of 2007).

Contrary to the popular belief, the borrower will still be able to benefit by consolidating student loans.

Here is an example,

If you had $15,000 in federal student loans and have not yet consolidated your payment would be approximately $175.  Even without the borrower benefit rate reductions, you can reduce your payment down to $134.  You will save $41 or 24% reduction in payment!  Your credit will also benefit, from this consolidation. (We will have a posting on this later).

The borrower though will no longer be eligible for the on time payment rewards or the cash back options so prevalent in the student loan consolidation arena.

Posted in General Discussion, Legislation, Loan Consolidation | No Comments »

Student Loan Consolidation & October 1 2007

Lenders are scrambling to prepare for the end of Federal Consolidation as we know it.  I just received word that many of the FFEL consolidation lenders are working overtime, some around the clock, to consolidate student loans before October 1st 2007.  If you have applied with a company and have not yet received notification that your loan has funded, I’d advise you call your loan specialist and request them to work on your loan as soon as possible.  One thing that we are doing at the Student Loan Service Center to ensure all of our borrowers receive all of their borrower benefits on any loan that has at least 1 eligible LVC (Loan Verification Certificate) and utilize the 180 day add on period to buy us time to complete the process.  As the story unfolds, I’ll be sure to keep you up to date on what is going on with current legislation.

Posted in Loan Consolidation | No Comments »