Sallie Mae Stops Student Loan Consolidation, Will No Longer Pay Origination Fees On Stafford Loans

Sallie Mae Stops Student Loan Consolidation, Will No Longer Pay Origination Fees On Stafford Loans

Consolidation loans are no longer profitable for Sallie Mae, so it’s saying goodbye to them. SmartMoney points out that ultimately this shouldn’t matter for students taking out new loans, since the original point of consolidation—converting lots of variable rate loans into a nice predictable fixed rate loan—is no longer relevant (all federal student loans are now disbursed with fixed interest rates.) SmartMoney says if you still have variable rate loans you need/want to consolidate, check out the government’s consolidation offering—”You’re likely to pay the same consolidation rates you’d pay if you did so with Sallie Mae,” they write.