How To Consolidate Your Loans Into Direct Loans — And Get Them Out Of Sallie Mae

The reasons for switching from Sallie Mae to Direct Loans are many, but let’s start with the first one: Direct Loans will FORGIVE the loan balance after 25 years of payments… even if you are on an “Income Sensitive Payment Plan”.

Now, 25 years may seem like a long time to have such a massive amount of non-dischargeable debt (some chiropractic college graduates have as much as $200,000!!), but Sallie Mae will NEVER forgive the loans. In my opinion, this is basically a debt prison that you can’t ever get out of.

If I ran up a bunch of credit card bills and later filed bankruptcy, these debts would be forgiven from my credit reports in seven years time.

But college loans are NON-DISCHARGEABLE. Fair, huh?

STEP 1: Get A Password

The first step to getting out of Sallie Mae and into Direct Loans is to get a PIN number.

You can do this by going to pin.ed.gov and filling out some basic information (name, social security number, birthdate, etc.).

By the way, the number for Direct Loans is 1-800-557-7392. Operators are available from 7am-7pm, EST.

From my experience, the folks at Direct Loans are much nicer to work with than anyone at Sallie Mae.

Once they send you a PIN, you can get a list of all your loan debts and total up the damage.

STEP 2: Get A List Of All Your Loans

The next step is to get a complete list of all the loans you’ve taken out.

One way to get a list of all your loans is to call the National Student Loan Data System. Their number is 1-800-433-3243. They are open 8 AM – midnight. (I tried to get a list of my loans this way, but it is pretty slow to have an operator read it out on the phone to you and I wanted a print-out of all my loans.)

So I’m going to try getting a list of my loans at their website, which is www.nslds.ed.gov. I got the PIN number so I could access this information.

STEP 3: Consolidate Your Loans

After you’ve gone to the National Student Loan Data System at nslds.ed.gov and gotten a list of all your student loans, head over to Direct Loans’ loan consolidation webpage at www.loanconsolidation.ed.gov and fill out an application. They will ask for basic information like your name and address, social security number, and birthdate.

They will also ask for two references; be careful who you list here because that’s who they will call if you have any problems paying back your loans. I recommend listing an understanding friend who knows about your student loan hell situation.

Then they will ask you to list ALL YOUR LOANS. This is the scariest part of the process. In my case, I have so many loans that entering all the information was very time consuming (in fact, it might’ve been simpler to just fill out a paper application). I also worried that I would not list all the loans and some would miss the consolidation… luckily, I got them all down somehow.

Here is the fastest way I found to get this information entered – if you have a lot of different loans:

1. Open the NSLDS website in one window (this is the list of all your loans with amounts, lender names, etc.)
2. Open the Direct Loan consolidation application in another window
3. Open Microsoft Notepad – use it to cut and paste the addresses of lenders to save time

Chances are that you might get lucky and only have three or four different lenders. In that case, you won’t have to retype all the addresses so many times. You just choose the TYPE OF LOAN (for me, this was either Stafford Subsidized or Unsubsidized) and enter the amount for each separate entry. I’m not sure what to tell you about the account numbers; that information does not appear to be listed in the NSLDS database.

If you do it this way, you should get a nice steady rhythm going as you enter the different amounts. I put on some music to make the task seem less like torture (staring at little numbers on a computer screen is a kind of torture, at least for me). All in all, the process took a little over an hour.

Once you consolidate through Direct Loans, you get a six month grace period where no one will be calling you and harassing you… or your references.

After you finish the application, you might want to go back and check one more time to make sure that you listed all your loans. Then just follow the rest of the instructions; you can sign the application electronically and submit it online.

You should call Direct Loans after five business days to see if your application is approved. Good luck!

This information was last updated in July 2007. If anything here is inaccurate or if you wish to comment about your experience consolidating into Direct Loans, please post your comments here.

Advertisements

20 Responses to “How To Consolidate Your Loans Into Direct Loans — And Get Them Out Of Sallie Mae”

  1. Jmeridian Says:

    Are you sure that Sallie Mae loans can be consolidated into Direct? I was told by Direct that my private Sallie Mae loans could not. The level of harassment, added charges, interest and incompetence is truly frightening. I would appreciate any suggestions as to how to wrest myself from the grasp of Sallie Mae’s minions.

  2. ConsolidateIMyIStudentILoans…

    […]How To Consolidate Your Loans Into Direct Loans — And Get Them Out Of Sallie Mae « American Student Loan DEBT Crisis[…]…

  3. lån utan inkomst…

    […]How To Consolidate Your Loans Into Direct Loans — And Get Them Out Of Sallie Mae « American Student Loan DEBT Crisis[…]…

  4. Thanks for finally talking about >How To Consolidate Your Loans Into Direct Loans – And
    Get Them Out Of Sallie Mae American Student Loan DEBT Crisis <Liked it!

  5. Hurrah! After all I got a weblog from where I can actually
    take helpful data concerning my study and knowledge.

  6. The information provided only applies to Federal loans taken out through Sallie Mae. The majority of Sallie Mae loans are private, and those cannot be consolidated.

  7. Please note doctors don’t prescribe oral medicines for vaginal infections, it can lead to side-effects. Uncooked ginkgo biloba seeds have shown some small levels of toxins, so if you prefer the seeds it is advised to cook them prior to ingestion. They only need to spend more affordable value for the technologies meanwhile they can get the exact same satisfaction as when they use i – Pad.

  8. Great post however , I was wanting to know
    if you could write a litte more on this topic?
    I’d be very grateful if you could elaborate a little bit further. Cheers!

  9. Hi there to every , because I am in fact eager of reading this website’s post to be updated on a regular basis. It carries fastidious information.

  10. Most serious senior citizens may as a result increasing numbers of married people community health and having affairs, and many
    will have already spent time working overseas.

  11. Hurrah! After all I got a weblog from where I know
    how to in fact obtain helpful data regarding my study and knowledge.

  12. magnificent submit, very informative. I ponder why the opposite specialists of
    this sector don’t notice this. You must continue your writing. I am sure, you’ve a great
    readers’ base already!

  13. My brother recommended I might like this website.
    He was totally right. This post truly made my day. You can not imagine simply how much time
    I had spent for this information! Thanks!

  14. Hello There. I discovered your weblog the usage of msn.
    That is an extremely smartly written article. I’ll be sure to bookmark it and return to learn more of your helpful info.
    Thanks for the post. I will definitely comeback.

  15. Hey I am so glad I found your web site, I really found you
    by accident, while I was searching on Google for something
    else, Nonetheless I am here now and would just like to say thank you for a incredible post
    and a all round entertaining blog (I also love the theme/design), I don’t have time to read through it all at the moment but I have bookmarked it and also included your RSS feeds, so when
    I have time I will be back to read much more, Please do keep
    up the awesome b.

  16. Katy Landscaping

    How To Consolidate Your Loans Into Direct Loans – And Get Them Out Of Sallie Mae | American Student Loan DEBT Crisis

  17. Yep it’s hilarious how dilemmas like this one begin looking extremely insignificant compared to the world events. The next chapter of the cold-war, the actual genuine war that erupts, Russia-China fuel deal axis… Nevertheless here we’re with this social media issues, – may we see the globe has improved? Iam not indicating that which you come up with is irrelevant, Iam indicating that the certain amount of detachment is healthful. Thanks, Sarah @ http://phyto-renew350e.com/

  18. Having read this I believed it was extremely informative.

    I appreciate you spending some time and energy to put this short article together.
    I once again find myself spending a significant amount of time both reading and commenting.
    But so what, it was still worth it!

  19. I will right away grab your rss as I can’t in finding your email subscription link
    or newsletter service. Do you’ve any? Kindly permit me know so that
    I could subscribe. Thanks.

  20. […] How To Consolidate Your Loans Into … – 16.03.2009  · The reasons for switching from Sallie Mae to Direct Loans are many, but let’s start with the first one: Direct Loans will FORGIVE the loan … […]

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: