Consolidating private student loans with sallie mae
For most, it is an opportunity to lower monthly payments by either extending the repayment terms or lowering the interest rate.
Even federal student loan debt is eliminated in some cases, see this article.For far too long there has been a societal assumption that all debt for school is "good" debt. There is no point where any public or private college ever says to incoming students that their field of choice will not be able to support the cost of the degree.But it's hard to say that's the complete responsibility of the school to do that.Basic economic principles would suggest that less competition in the market means you will have a harder time getting approved for a great private loan consolidation.This might also be a sign of good news ahead for current private student loan borrowers.Both of my parents are out of work and I moved home to pay their bills to keep the house, but my loans went into default, with interest I owe $200,000 which is insane and I can't even get married or anything because of them.
I want to settle my debt but they don't deserve that interest from not helping make a real life payment plan for me .
Sallie Mae, the nation’s largest student loan company, no longer offers private student loan consolidation services.
For those not familiar, consolidation is the process where a new lender pays off existing loans of the borrower and the borrower then repays the new lender.
These actions together would make sense if restoring bankruptcy protection for borrowers was in the future.
If borrowers could declare bankruptcy, these loans would be much less profitable and possibly even lose money.
Sallie Mae holds more student loans than any other company, and they have decided that this is a market segment in which they don’t even want to participate.