Student Loan Help

Anytime the federal government and money are involved it is bound to be confusing and frustrating. The federal government is always changingthe rules and regulations for federal aid creating new loopholes and issues for the student loan industry.

For example, a recent change in legislation does not allow students to consolidate while they are enrolled at least half time in school. To consolidate a student has to be out of school or carrying an academic workload of less than part time.

I personally think this rule is ridiculous. I get many requests from borrowers wanting to consolidate their loans because they need to improve their credit score to receive a better rate on a home mortgage or a car loan. Its true-consolidating improves your credit! Every year you attend school and borrow a student loan you create an open line of credit on your credit report. Consolidating your loans into one open balance really gives a boost to your credit score. When a computer calculates your credit score, it will see this: eight loans paid in full. You will look like a responsible and trustworthy borrower. Why does the federal government care that a student wants to make this smart financial step?

You can write to me about it. Not much I can do except agree with you. I suggest you write to Congress to complain about this ridiculous rule.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans