Sallie Mae Advises Borrowers to be Savvy When It Comes to Student Loan Consolidation

RESTON, Va., April 13  /PRNewswire/ -- Along with their diplomas, college graduates are likely to face a flurry of offers to consolidate their student loans.

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Before consolidating, however, they should carefully weigh their decision, says Patricia Scherschel, vice president of loan consolidation for Sallie Mae, the nation's leading provider of education funding and the largest consolidator of student loans.

"Student loan consolidation is an important financial option," says Scherschel. "You want to make the right decision, so do homework before signing on the dotted line."

Scherschel offers the following tips for borrowers who may be exploring loan consolidation.

    *  Contact your college financial aid office for recommendations and
       information on reliable and trustworthy lenders. Because
       consolidation lets borrowers extend their repayment up to 30 years,
       it is important to choose a lender wisely.

    *  Investigate the lender's borrower benefit program.  Many lenders,
       including Sallie Mae, will offer interest-rate reductions for paying
       on time or using direct debit. Also be sure to read the fine print of
       the benefit program being offered, including if, when and how you
       qualify for the benefit, as well as how you could potentially lose
       it.

    *  Be cautious of the word "free." While lenders are not permitted to
       charge borrowers a fee to consolidate their loans, Consolidation
       Loans are not interest-free. It is important to understand all of the
       costs up front.

    *  Keep on top of deadlines. On July 1, interest rates on federally
       guaranteed education loans are expected to rise for the second-
       straight year.  Borrowers who consolidate at today's interest rates
       -- the fourth-lowest in the 40-year history of the federal student
       loan program -- could save hundreds, even thousands, of dollars.



"Consolidation is the key to avoiding a rate increase," Scherschel says. "Once final exams are over, current students and this spring's graduates should have a one-track mind: getting their consolidation application in before midnight on June 30."

For more information on loan consolidation, log on to http://www.salliemae.com/consolidation or call 800/448-3533. 

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DATASOURCE: Sallie Mae



CONTACT:  Erin Korsvall of Sallie Mae, [phone]



Web site:  http://www.salliemae.com/



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