Fed Financial

Is consolidating my federal student loans with Direct Loan Servicing my best option?

Do they have the best rate? After all, THEY ARE the government, whom regulates rates, correct?

Public Comments

1. Direct Loan Servicing is definately an option for you when you are considering consolidating your Federal Student Loans. Also, yes the Federal Government are the ones who regulate the interest rate on Federal Student Loans. The interest rate is established every July 1st of the year and is regulated by the T-bill. Keep in mind, because Direct Loan Servicing is, in essence, the Federal Government they rarely pursue someone to consolidate their Federal Student Loans since they are so overwhelmed with the process of issuing Federal Student Loans. Because of this they task other companies to deal with the consolidation volume. The other companies the Federal Government tasks to do this offer the FFELP Consolidation Loan Program which is also regulated by the Federal Government so these companies must all follow the same rules and regulations as Direct Loan Servicing. One thing the FFELP Consolidation Loan Programs offers is additional Borrower Benefits for those who qualify. The FFELP Consolidation Loan Program companies also offer their assistance in filling out your paperwork, which can be difficult at times. For more information on borrower benefits please visit the source below.