Sallie Mae No Longer Offering Consolidation Loans
I was bemoaning my five loan payments to a co-worker today when she mentioned that since the Fed has recently cut the interest rate again, it would be a good time to try consolidating my loans. I had tried to consolidate with CitiBank in the past, but they turned me down because of complicated paperwork related reasons that, frankly, I didn’t understand. My co-worker recommended Sallie Mae so I thought, what the heck, I’ll check it out.
I went to their web-site, but I couldn’t find anything on consolidation loans. “That’s odd,” I thought, and tried Googling “Sallie Mae consolidation loan” instead. Low and behold, I came across this page, somewhat hidden on their web-site. An excerpt:
Thank you for your interest in Sallie Mae, the nation’s leading provider of saving- and paying-for-college programs. Severe legislative cuts made by Congress made federal student loan consolidation uneconomical. This, combined with the credit market deterioration, has caused us to suspend participation in the federal consolidation loan program.
I did some more searching and found an interesting Washington Post article covering the development, which happened in April. They’ve also started charging application fees for applying for federal loans.