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It’s been a long time coming, but — in a sure sign of the times — Sallie Mae has just officially announced that they are no longer offering student loan consolidation services. The company claims they are no longer profitable.

photo credit: Keren_

According to SmartMoney, if you have variable rate loans (recent grads might, although all current and future federal loans will be given with fixed rates) you need/want to consolidate, you should check out the government’s consolidation offering. They claim,

“You’re likely to pay the same consolidation rates you’d pay if you did so with Sallie Mae.”

As for the 1.5% loan origination fee, students will no longer enjoy having that waived by Sallie Mae. Instead, you should now start shopping around for lenders who are still willing to pay them (J.P. Morgan Chase being one, but I’m sure there are more).

“Sallie Mae Halts Student-Loan Consolidation” [SmartMoney.com]

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