student loan consolidation loan
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ConsumerWatch: Consolidate Student Loans Intelligently
Vashawn Smith said he's taken a number of phone calls from lenders who want to sell him a student loan consolidation plan for his master's degree program. Smith said he gets about a phone call per day and letters in the mail. All the offers encourage him to lock in his $23,000 in loans at a lower rate.
University of Nebraska-Omaha finance professor David Volkman said lower rates are the biggest advantage of consolidation.
"There's all kinds of offers out there, and the student has to be careful and evaluate the offers carefully. "The student needs to look at: Will there be closing costs? There are lenders out there that are saying no closing costs. Then, there are other lenders out there that are offering benefits after you consolidate."
Volkman said students should shop around.
More student loan consolidation loan info
Fitch Rates SLM Student Loan Trust 2006-5 Issue
The ratings are based on the quality of Federal Family Education Loan Program (FFELP) student loan portfolio, the quality of the servicing provided by Sallie Mae Inc., rated ABPS/S1, the transaction's legal structure and level of credit enhancement. The ratings reflect the ability of the trust estate to pay note principal at the legal final maturity and timely interest. The ratings do not address the ability of the reset-rate noteholders to tender their notes at a remarketing date nor do they address the ability of the indenture trustee to auction the collateral pool prior to the stated maturity of the notes.
Credit enhancement for the trust consists of the reserve account, sized at 25 basis points (bps) of the current student loan pool balance and the add-on consolidation loan account balance with a floor of $4,524,559 or 15 bp.