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I keep getting calls from companies that want me to sign up with them to consolidate my student loans. Has anyone tried consolidating student loans? Are there any disadvantages? I just don't want to be scammed.

 

Don't. Just a way for them to get money. Just take the ones that are given to youy from your college. I think right now rates are 4% for students and 6.25% for parents.

 

Well, depends on the interest rate of your current loans and if you hate paying more then one bill a month.

Here is the major disadvantage. Once you consolidate, you cannot refinance the loan as a student loan for a better rate (you could get a personal loan, but then it probably won't be 10 years long,and the rate won't be great). I'm one of those that likes to keep my bill paying to a minimum, and consolidated a few years ago not understanding the implications. Well, I'm paying an interest rate of 8% when I could be paying something like 3%. But since I already consolidated, I'm unable to "consolidate" or refinance with another company for a better rate.

It's a terrible law, and supposedly congress has been looking into changing it. Extremely frustrating!!

ERIK