US added to that hardship by taking advantage of troubled borrowers and failing to describe their services honestly,” said CFPB Director Richard Cordray.“When scam artists prey on student loan borrowers, we will take action to halt their illegal activity.” The U. Department of Education offers numerous plans to borrowers with federal student loans to make payments more affordable.In other cases, these companies fail to deliver on their promises, leaving you with more debt and less time to avoid financial distress or default.
— Today, the Consumer Financial Protection Bureau (CFPB) took action to put an end to two student “debt relief” scams that illegally tricked borrowers into paying upfront fees for federal loan benefits.
The most popular options include extended repayment, graduated repayment, and income-based repayment.
Choosing to extend your repayment with your consolidation loan can reduce the size of your monthly payment.
Around 2010, I participated in a program through the government that resulted in a Direct Consolidation of some of my loans through Fed Loan (not all of them were eligible.) Nothing was refinanced, no rates changed, I was just able to manage my loans somewhat easier by having my loans spread across less lenders.
That was helpful, but even then, I still had 3 different lenders, and something like 15 different loans. And I cut my interest rates, without lengthening my loan (read: It's more convenient AND I'm saving money!
And I haven't even got to the interest rates yet. ) And I removed a co-signer and improved their credit score.