Guide to Leading Student Loan Consolidators

If you are looking to consolidate your student loans to take advantage of lower payments and lower interest rates you are probably interested in finding out which is the best lender to go with for your needs. To help you with this process we've prepared a small guide that lists some of the leading student loan consolidators and the programs that they offer.

Citibank
More than just a credit card company, Citibank is a full-service financial institution who offers student loan consolidation services. One of the best recognized names in the world when it comes to financial transactions, Citibank offers a competitive program for those wishing to consolidate student loans.

One of advantages of going with Citibank is that they offer a number of interest-rate reduction incentive programs. These include a 0.25% interest rate reduction when using automatic payment plus another 1.0% reduction when you make 36 consecutive monthly payments on time through their CitiExtra program.

Citibank has no processing fees for consolidation and does not charge a pre-payment penalty should you decide to pay your loans off early.

Nelnet
Nelnet works with various colleges and universities to offer student loan consolidation services to students and alumni. They are one of the leading consolidators for student loans and offer a full-service servicing function for all types of student loans.

Offering a 0.25% interest rate reduction for those using their automated payment system, Nelnet also offers a unique program for those who make their first 30-consecutive payments on time. Borrowers may either take a 3.33% principal balance reduction or elect to take a 1.0% reduction after 36 initial on-time payments. Depending on the size of the loan, the 3.33% principal reduction plan can add up to big savings!

Nelnet offers flexible repayment programs (such as graduated repayment, income-sensitive, etc.) as well as charging no fees for processing and servicing your student loan.

Sallie Mae
By far the most recognized name in the student loan industry, Sallie Mae originally started out as a federal program that has since privatized. However, the service and mission remains the same - to provide student loan services to help people get the education that they desire.

Sallie Mae works to take the hassle out of student loan consolidation by doing most of the paperwork for you through a personal concierge. About the only thing you have to do is read it over and sign! In addition they also offer a flexible repayment program and do not charge application fees for student loan consolidation.

Through their SmartLoan program they also offer interest rate reductions that can save you thousands of dollars over the life of your loan. An initial 0.25% deduction is taken when you sign up for automatic payments with a balance of at least $7,500. You can then earn another 1.0% deduction after you make your first 36 payments on-time every month. These discounts remain in effect as long as you continue to make payments on-time over the life of the loan.