What The Lenders Don’t Want You To Know About Your Student Loan

from them at a lower interest rate, why should that be illegal? Talk about communism.

When the economy turned down in 2006, I could not make my crazy $350 per month payments any longer for my income dropped. Wells Fargo deferred my student loan until 2007 due to economic hardship. But in 2007, the economy was still bad and worse, because I deferred the loan, I now owed an extra $50 per month! I tried to get my loan refinanced at a much lower interest rate of 3% from an ad I received in the mail. Wells Fargo refused to turn my loan over to the company and explained to the company that I had already consolidated my loan one time which is all I was allowed.

Wells Fargo wanted me to defer my loan again. I said no way, then my monthly payment would be $450 per month if I deferred for another year!

Direct Consolidation Loans

What Wells Fargo never told me about was the Direct Consolidation Loans program through the Department of Education. The Wells Fargo phone idiot was very deceptive and wanted to keep the loan with Wells Fargo at all cost, including withholding information from me and flat out lying about my options. She told me I couldn’t refinance and when I told her about the Direct Consolidation Loans program she got real quiet. Then she told me that the Direct Consolidation Loans program doesn’t accept most people and that what I need to do is to just have my loan deferred through them for another year. I replied, “And then what? You raise my monthly payment by $50 each time I defer the loan! In one year from now my monthly payment will be $450! You’d like that wouldn’t you!” When I checked with the Direct Consolidation Loans website I found out that the opposite was true! That the Direct Consolidation Loans program does accept most people!

Fortunately I used the Internet to research the issue myself and here is how it works. The Direct Consolidation Loans program CAN consolidate your loan a second time if you are in financial trouble. That financial trouble is going into default and collections on your student loan (which I was). The Direct Consolidation Loans program pays off Wells Fargo for the balance on the loan (without all that interest which is why Wells Fargo didn’t want me to know about this program), then sets your interest rate based on the weighted average interest rate of the loans being consolidated, rounded to the next nearest higher one-eighth of one percent and