Is it wise to consolidate student loans thru sallie mae when you took them out with them in the first place?

Is it wise to consolidate student loans thru sallie mae when you took them out with them in the first place?

I understand all consolidation rates are set by the gov. so it shouldn't make any difference who you use to consolidate with.

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While your base interest rates will be the same no matter who you consolidate with, many companies offer borrower benefits to help you further lower your payments.

These benefits include lowering the interest rate right when you consolidate, offering you staggered interest rate reductions based on your on-time payment history, or even up-front principal loan deductions (where they forgive a small portion of your loan amount.)

Do your own research - there are hundreds of student loan consolidators out there, many are "fly by night" internet start-ups. I am not a fan of Sallie Mae but they are a reputable company and since your loans are with them see what they will offer.

Also check with your school's financial aid office or website. Many schools will offer a list of consolidation lenders that will not include the smaller companies that market through spam, yahoo answers, etc. Or better yet, check a few school's websites. If you see a couple of lenders that are consistently listed, they may be a good one to look at.

PS Interest rates remained relatively flat from January 1 to April 1. We cannot predict what will happen on July 1 but we don't expect a big swing in either direction, so don't necessarily be in a rush.

Good luck!

*** Go with whoever offers the lowest rate. There IS a difference. And rates are going up.
*** You are correct when you say that the consolidation rates are set by the federal government. Student loan companies are not allowed to offer a different interest than what the federal government sets the interest rate at, which is based off the T-bill.

Student loan companies DO offer borrower benefits. These do differ on a company to company basis, but there are two main borrower benefits that are offered.

Do to the fact that based on all economic indicators right now it appears that interest rates may be increasing after July 1st I would suggest getting yourself locked in at your lowest interest possible as soon as possible.