<p>I wonder how reliable are those agencies that are offering a "Student Loan Rate Reduction," not even the agencies so much but the consolidating itself. </p>
<p>The student loan interest rates are predicted to rise by at least 40% in July (this year). Thus, such agencies as National Educational Loan Network (Nelnet), Federal Loan Consolidation, and others started to send letter proposing to consolidate Federal student loans at rates as low as 1.625%, reduce loan payments by up to 60%. They say that no credit check or co-signer required, no application fees or charges, no prepayment penalties, etc. </p>
<p>Did anyone already tried to do it? Does anyone knows anything about it, how benefitial is it? Can consolidation have any negative affect on my repayment?</p>