Reputable Lenders
A good student loan company will have a range of flexible plans for you to choose, each designed to meet students' individual circumstances. All good lenders offer an attractive low interest rate to help you consolidate and manage your debt repayment adequately.
Disreputable Lenders
Bad student loan consolidation services may openly or overtly charge for loans; or they may ask for your credit report. In either case, you should look elsewhere. Some of these companies come under false pretences and may claim that they are "not for profit". Do not be swayed by this. Whether a lender offers a "for profit" or "not for profit" service is irrelevant and has no bearing to the high standard of service that you expect from them.
How Do I Check Out Potential Student Loan Services?
Due to the huge numbers of lenders, some good and some bad, you should choose your lender with care. It is a good idea to approach lenders after recommendation from family or friends. Find out if lenders are required to have a license to offer loan consolidation in your state. You can easily check this out from The Attorney General's office. To further check the credibility of a lender, you can consult your local Better Business Bureau and independent consumer advisory agencies.
Make sure you understand all the benefits, terms and conditions each company offers and ask questions if there are issues you need clarification on. Make sure you know the minimum monthly repayment. If it is above what you can manage then turn to other lenders.
Also ensure you complete applications accurately to avoid delay in your application. Most importantly, do not put your signature to any loan agreement you do not understand.
Applications can take 30-60 days so don’t worry if you have not heard from the lender 4 or 5 weeks after the application.
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