How to Avoid Student Loan Consolidation Lender Scams

You should not have to pay any fees in advance to consolidate your federal student loans. You may have a slight increase in your interest rate on your new consolidation loan - but that is all.

Now keep in mind for some federal loans they may have some fees - but those will come out of the disbursement checks when the loan is funded - the lender will not ask for those costs up front.

If a lender asks you to pay a fee in advance to do your federal government student loan consolidation, then they are trying to scam you. Find another loan consolidation company.