1. Students/parents may actually benefit from all of the lenders competing against each other because the benefits keep getting better - so that is a good thing!
True!
This is a slightly old post but I just wanted to weight in. The new reform bill that has been proposed would give lower rates to new students, but force a lot of loan companies to eradicate their benefits and shut down. It's a shame that a middle ground can't be reached, because although organizations like Sallie Mae take advantage of students there are reputable companies out there. My parents consolidated with the Educational Loan Company and got the best reduction rate I've seen along with excellent customer service (I'm pretty good at math and actually considered being an accountant so I helped my parents a lot when they took out loans for my sister's undergrad!). Friends of ours have also consolidated with other banks that haven't given them any issue. Consolidation isn't a scam, it's just scam-PRONE.
