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Student Loans Information and Savings

Student Loan Consolidation
HIGHLIGHTS
  • Government loans (Stafford Loans) typically offer the the best interest rates and terms.
  • Private student loans on average carry higher rates than government loans.
  • Lower credit score will likely result in a higher interest rate for private student loans.

Shopping for a Student Loan

Are you shopping around for student loans? Maybe just looking for student loan rates and information? Whether you are a current student, prospective student, the parent(s) of a student, or someone that already has student loans, you need to take time to research all of the various options available.

Everything You Need to Know About Student Loans

There are two main categories of student loans: government student loans and private student loans. Generally, government loans (many are called Stafford Loans) will offer the best interest rates and terms. This is because the government loans are issued on a need basis up to the allowable maximum. Private Student Loans are issued based on credit thus carrying higher interest rates.

Parents of students should look carefully at Parent Plus Loans, which are also government student loans. Again, the interest rate is likely to be better than the rate you can secure from a private lender for student loans, since the government takes much of the risk of default, thereby subsidizing your low rates.

If you are already carrying student loans and have started making payments, you should take a careful look at consolidating your student loans. Consolidating your student loans can help you lower your monthly payment and lock in an interest rate, so you are not exposed to a potential rise in rates which could affect your payment greatly.

Please use Bills.com as your online resource for learning about and finding the best student loans in the marketplace.

Comments (28)


Kim J.
Chicago, IL  |  January 29, 2012
I'm at my wits end. Of course it was my last quarter and I'm scheduled to graduate in a few months and I'm told that I need more money for school. With no other options I take out a private student loan with a cosigner. I know, bad idea but I've come so close to being complete. Having a financial hardship I deferred my loans but was told that I couldn't defer the private loan, so I asked for a payment that I could afford that too was denied. My cosigner is now an ex and of course they are harassing him for payment and he is now harassing me because now his credit is at risk. Now this company every 3 months has me pay $50 for a 3 month deferment. My suggestion was to take an automatic payment of $50 per month instead of no payment at all. They denied it, so every 3 months I call and make one payment of $50 for a deferent. Is there anything that I can do? What other options do I have? I'm just frustrated with the constant phone calls sometimes they are back to back within 30mins.
Bills.com
January 30, 2012
Your creditor has legal rights and obligations. Suing a borrower who is delinquent is a right, harassing a borrower is not allowed. I suggest that you read the Bills.com article about harassment by debt collectors. However, you will still have to deal with your debt. I imagine that $50 is not a significant amount toward paying the debt, and does not cover interest payments. I am surprised that the creditor has not taken more aggressive action. Before you pay money, verify the debt.

However, a 3 month payment for deferment is not a real solution, and you are building up more and more debt. Your best solution is to work out a budget, and offer a settlement, with a combination of a lump sum and a realistic monthly payment over a short term.
Shucara M.
Houston, TX  |  December 30, 2011
Hello! I am a college senior who will be starting nursing school in January. I currently have about 15k in loans and will need about 20k in order to pay for nursing school. These are all PLUS and Unsub loans. Is it wise for me to open a private loan? And if so, do I get enough to cover the whole time of school in one application or apply semester by semester? Thanks!
Bills.com
December 31, 2011
A student or parent's first choice in an education loan should be a federal loan. The Dept. of Education offers several payment plans if you cannot afford to repay the loan(s), such as IBR, which private lenders have yet to match. Also, the Dept of Education will cancel a loan after 20 years of repayment, if the borrower works in public service, or becomes permanently disabled. Again, private lenders do not offer these features.

You mentioned you will soon be a graduate student. See the Dept. of Education Direct PLUS Loans for Graduate and Professional Degree Students and Graduate and Professional Students pages to learn more.
Andy C.
Scottsdale, AZ  |  December 11, 2011
My mom took out a Parent Plus student loan a long time ago through Sallie Mae. The loan was entered in under a permanent interest rate percentage. Sallie Mae refuses to help us change the interest rate or the amount of the monthly payment. Any advise on how we can challenge this? My mom does not qualify for the low-income loans, however I can not afford the payments.
Bills.com
December 12, 2011
A Parent Plus Loan is borrowed by parents to supplement the separate loans borrowed by students. Sallie Mae, a student loan servicer, has little incentive to negotiate lower interest rates on its loans. Sallie Mae services federal and private loans. If the Parent Plus loan is federal, investigate a Consolidated Federal Loan. If your loan is private, see the Bills.com resource Student Loan Consolidation to learn where to begin.
Jeanine M.
Cuyahoga Falls, OH  |  December 01, 2011
My question regarding a past student loan and co-signer: About 13 years ago, my sister co-signed a student loan for me. There were a few times I was late with the payment, hurting her credit. Within the past 5-7 years the loan was paid off. It currently is still hurting her credit. Is there a way to get this off her credit report? Is this something I have to do since I was the main name on the loan or something she can get removed? Any help on this would be greatly appreciated. Jeanine
Bills.com
December 01, 2011
A co-signer's obligations are the same as the main borrower. The loan is reported on your sister's (the co-signer) credit report, like any other loan or credit she takes. The balance, the late payments, and any other factor related to the loan will affect her credit score. If the loan was already paid off 5-7 years ago, the effect, although impossible to quantify in exact numbers, should be relatively small. This is due to the fact that old closed accounts have a much smaller impact on the overall credit score, than do newer, more relevant accounts. I suggest that you and your sister read Bills.com information about tips to improve your credit score.

Also, when a debt is paid off, it could be possible to remove the debt from the credit report using the methods a credit repair firm employs, either trying it on your own or by hiring a credit repair firm.
Shawn E.
Mc Leansville, NC  |  September 07, 2011
I have private loans with Citibank that have a balance of around 36k, the monthly payments at this point are 615/month!! I have tried to consolidate w.wells fargo, that didn't work out bc my credit had been ruined with these student loans while i was out of work. What are my other options?
Bills.com
September 07, 2011
See the Bills.com resource Default on Private Student Loan to learn more about your options. Ask any follow-up questions you may have on that page.
Karen R.
Oneida, NY  |  August 22, 2011
My husband has a private student loan that went unpaid for years. We straightened out payments for his federal and he was unaware of the private. They didn't contact us for over 7 years and now with interest it is over double the original loan amount. We are paying over $200 a month, but with the interest it actually isn't bringing down the balance. Is there something that we could have done with this? The private loan was through his college and we never received any notices for that amount of time, if we had it would have gotten taken care of immediately. We now have two children and want to figure out a way to start knocking down the debt.
Bills.com
August 22, 2011
Some loans that are directly from a school are essentially unsecured loans, so you may be able to negotiate a settlement. If his loan was that kind of loan, it would also have been subject to the statute of limitations and it would have been wise to check into that before making any payment, which restarts the clock on the SOL.

Before you kick yourself (or your spouse), you should know that it is likely the case the debt is not subject to SOL because of its status as a student loan. In that instance, you don't have a lot of options; the creditor holds the stronger cards. Not paying can lead to garnished wages and levied bank accounts.

Perhaps you can have an attorney look over the original loan paperwork, to see if it is the kind of student loan that does not have the standard protections of most student loans.
Katy A.
Las Vegas, NV  |  August 16, 2011
my parents have a parent plus loan now that will get me thru this year 2011-2012. but if they end up having to default on their mortgage will it affect their chances of being able to borrow again for the rest of my college tuition....the next 3 years???
Bills.com
August 16, 2011
The Dept. of Education bases part of lending decision for PLUS loans on the borrower's credit rating. See The Dept. of Education's Additional requirements to receive a PLUS loan. What is unclear to me is whether the PLUS loan must be applied for each year (which would trigger a credit check) or if loans for successive years would fall under the terms and conditions of the initial loan and credit check. Call the Dept. of Education Direct Loan Servicing Center at (800) 848-0979 for a definitive answer.
Kevin K.
Raleigh, NC  |  June 08, 2011
I consolidated my student loans about 5 years ago and have made every payment on time since then. However, when the initial discussions took place to consolidate the loans, they quoted me at one rate for a majority of the loans but the promissory note listed a higher rate. I caught it, called them, and they told me to cross out the rate, write in the correct one, and initial, which I did, then signed and returned. I've never signed anything with the higher rate, yet they are insisting those are the terms. This conversation has been ongoing and it's beyond frustrating. I'm considering defaulting until they finally correct the rate. Is there a way to make them correct it?
Bills.com
June 08, 2011
Becoming indignant and defaulting on the loan is your worst possible path to a solution. Consult with a lawyer who has experience in either civil litigation or consumer law. He or she will write a series of letters explaining your position, and how the lender can resolve the issue. If that fails, he or she will file a lawsuit for a breach of contract. Yes, a lawyers' time is not cheap, but the plan you suggested will be very expensive for you indeed.
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Shawn P.
Smyrna, GA  |  June 19, 2011
I got a student loan from Sallie Mae. I have tried to get this reduced based on my situation now, unemployed single mother. They will not work with me and when they say that they will, they claim they lost the paperwork and or other things, like claiming that they type of loan I have can't be reduced. Payments were $40 per month and then they jumped it up to over $375. My mother is co-signer and they call and harass and threaten her all the time. We never get the same answers from anyone we call there and try to work things out with them. What do I do? I have heard all sorts of law suits and bad rap about Sallie Mae Student Loans.
Bills.com
June 20, 2011
If your loans are federal, then see Sallie Mae's IBR page. If your loans are private, then see Sallie Mae's payment postponement page.
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