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Don’t Be Fooled By Student Loan Consolidation Mailers or You Will Hate Yourself

A great reader sent me in a student loan consolidation mailer through my I Buy Junk Mail program.

While we sit and wait for the Biden Student Loan Forgiveness plan to roll out, this is an excellent time to remind all not to consolidate federal student loans into private student loans. If you do, you will lose all the benefits of forgiveness.

A recent reader almost did that following another offer.

You will notice that the mailer below from Citizens Bank in Rhode Island does not warn consumers about not consolidating federal student loans into private student loans.

If you do this, it is an irreversible mistake you will regret.

Don’t Be Fooled By Student Loan Consolidation Mailers

The only warning or mention about federal loans I spotted was a short line on the back of the mailer that is not a warning.

Don’t Be Fooled By Student Loan Consolidation Mailers

Be careful. Don’t get distracted by a lower interest rate offer and miss eliminating federal student loan benefits and forgiveness options like Public Service Loan Forgiveness or Income-Driven Repayment programs.

Falling for private student loan consolidation offers at this point would be like bending over to pick up a penny and plummeting into the Grand Canyon and killing your finances.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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