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With recent changes in the law, borrowers can now only consolidate after graduation, but the good news is that you now have “consolidation freedom of choice” and can now consolidate with any lender even if all of your loans are with the same lender. What is now most important is for you to become an informed and educated consolidation consumer.
As dental school students and graduates, never make assumptions about consolidation because it is uniquely personal to each borrower and can be complicated, confusing and even contradictory in its rules and requirements. It is important to understand that all Federal student loan consolidation lenders must use the same formula to determine the consolidation interest rate. Since consolidation is a very competitive industry, most lenders try to differentiate themselves by offering incentive side deals, “lender provided” discounts, rebates or bonuses to attract borrowers. These “lender provided” side deals are only as good as the lender allows because unless the loan is “re-disclosed” (rewritten with the incentives included) the incentives can be voided or cancelled at any time. Once you sign the consolidation application/promissory note with a specific consolidation lender and your student loans are paid off, you are locked in to that lenders’ “lender provided” borrower incentives and discount benefits and the “lender provided” eligibility criteria required to receive and maintain the discount benefits. In-school and reconsolidation are no longer permitted by law. It is highly advisable to always consult with a trustworthy experienced professional consolidation specialist who is committed to assisting you in learning about and understanding all aspects of consolidation and how consolidation may affect your unique individual situation and options and ultimately your success, economic stability, financial security and happiness. |
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