How to Avoid Student Loan Consolidation Scams eHow

By Natasha Puryear, eHow Contributor

Student loans are a necessary evil for many adults trying to obtain a higher education. Once you finish school you have six months before repayment on those loans begin. If you have taken out a number of student loans you may be making multiple payments each month. Consolidating your loans into one payment can help you save money and reduce the risk of accidentally missing a payment on one of your loans. Consolidation is also one of the only ways to pull your loans out of default if you have fallen behind on your payments.

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     Speak with your current loan holders to see if they offer a consolidation program. Request interest rate information on the consolidation loans they offer.

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     Avoid a lender who tries to pressure you into consolidating quickly. For many student loans, there is no time limit for consolidation.

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Compare your current loan holders' interest rates with the Department of Education's direct loan consolidation plan. Do not contact companies claiming to consolidate student loans that are not associated with a bank, financial institution or the Department of Education.

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Ask about any grace period offered at the beginning of your consolidation. If a lender is unwilling to give you a grace period it is best to find a different lender.

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Fill out the consolidation paperwork of the program you have chosen. Never pay someone else or a third company to fill the paperwork out for you.

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Check your Web browser to ensure the online application is secure before completing it. The address in the Web browser must say https versus http for the application to be secure.

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Turn handwritten applications in to a local office of your lender if possible. You will know they arrived and get a feel for local customer service. Find a new lender if you are uncomfortable with the service in the local office.