How do I know the consolidation lender is reputable?

Good loan consolidation vs. bad loan consolidation

Once you’ve determined that you qualify to consolidate student loans, make sure that the lender is reputable. Think before you act and remember to trust your gut instinct. Before signing on the dotted line, be sure to ask yourself these questions:

• Do I have to pay money to get money? For example, is the lender asking for an up-front fee just for applying?

• If it sounds too good to be true, it probably is. Low interest rates are one thing, but if someone is offering you no-interest rates and low payments over a long term (over 30 years, for example), look into the company further before handing over any cash.

• It should never cost you more than a postage stamp to get more information on a lender.

• If a lender insists that you make a decision right away, without any credit check or follow up to your application, question them further. Remember, if you’re suspicious of a particular lender, don’t be afraid to hold off. Ask questions and protect your financial future.