Sallie Mae, no more?

  • Posted by a hidden member.
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    Apr 14, 2008 4:58 PM GMT
    so since im about due to graduate in less that 3 weeks now i decided that i would do my research on student loan consolidation. Since Sallie Mae is one of the nations leading institutions on student loan consolidation, i thought it logical to start there. To my surprise when i clicked on the post graduation link it read,

    "Federal student loan consolidation:

    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.
    Sallie Mae is committed to the federal student loan program and offers a variety of federal student loans and repayment options. If you would like to learn more about the various repayment options that can help you manage your monthly payment amount, please call a repayment specialist at (866) 457-6918.
    Sallie Mae’s mission is to expand access to college and to ensure no student is denied the opportunity to pursue their dreams. This decision allows us to direct our resources on maximizing college access for more students and parents.
    Sallie Mae reserves the right to modify or discontinue loan programs at any time without notice."

    At first i thought it was a cruel joke, but this morning while performing my sacrifice to the coffee goods, CNN confirmed this devastating news. what are we recent graduates to do....are there any financial wizes on here to offer suggestion?
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    Apr 14, 2008 8:32 PM GMT
    Im over $10,000 in student loans..thankfully, i got all grants for next year, no loans..and im planning to refinance my sallie mae loans from another loan from a bank with a lower interest rate....sallie mae i think chrages 6.8% interest, thats a bit high i think
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    Apr 14, 2008 10:31 PM GMT
    Check out Nelnet ( I have my student loans consolidated through them, and my oldest daughter did, too. They're good.
  • auryn

    Posts: 2061

    Apr 14, 2008 10:37 PM GMT
    Does this mean that my loans with Sallie Mae are no more??? Lost and unneeded to be paid back?icon_biggrin.gif
  • redheaded_dud...

    Posts: 408

    Apr 14, 2008 10:37 PM GMT
    good article from the Wall Street Journal about this:

    and so that you don't miss it:

    While many lenders have eliminated or pared back their federal consolidation-loan programs, all borrowers, regardless of where they went to school, can consolidate their loans with the government at

    Because of the Federal Reserve's recent rate cuts, borrowers who haven't already consolidated their variable-rate federal loans should wait until after July 1 since the consolidation rate is likely to drop by at least three percentage points to at least 3.25% -- the biggest drop in rates in the history of the student-loan program, estimates Mr. Kantrowitz.
  • dfrourke

    Posts: 1062

    Apr 14, 2008 10:44 PM GMT

    apparently, you can still consolidate your loans with Sallie Mae...just not through a federal program [read: higher interest rates]...

    - David