Did the recent student loan legislation eliminate cash-back incentives for consolidation?

Or does it just seem that way?Did the recent student loan legislation eliminate cash-back incentives for consolidation?I cannot speak for other lenders, but at Sallie Mae we are working extremely hard to balance the legislative cuts' significant economic impact on our company with our commitment to serve students, parents and higher education institutions.



Recently, Sallie Mae announced that student loan consolidation customers who have an initial consolidation loan balance of $10,000 or more disbursed on or after Oct. 1, 2007 are eligible to receive a rate reduction of 0.25% if they make payments using automatic debit. Those who are interested can visit our website or call 1-800-448-3533.Did the recent student loan legislation eliminate cash-back incentives for consolidation?Sallie Mae and others, including Wells and Wachovia have reduced or taken away their consolidation benefits. As the loan rates begin to decrease back to the near 3% level in a few years, there wont really be a need for the consolidation loans. There also will be alot fewer lenders in the industry. Check with each lender to confirm. It should be on their websites.