What's great to see, though, is that the Consumer Finance Protection Bureau (CFPB) has been taking action against these types of companies. Right now though, let's break down these student loan debt consolidation companies and talk about why you should be avoiding them.
First, I want to make clear that these companies aren't fraudulent.
Consolidating your federal loans through the Department of Education is free.
If you see an ad, receive a letter, or get a phone call from a company that charges you a fee to consolidate, don’t respond.
to make sure you’re getting the lowest possible rate.
One way to do so is through Credible, a student loan refinancing marketplace and Nerd Wallet partner.
Over the last month we have been getting bombarded with reader questions about student loan consolidation.