My fiancé is going to school online and he is to graduate soon. We get phone calls and letters ALL the time about loan consolidation from different companies. Some even offering to pay him money to go with their company. Is this for real? What do they get out of this? They say the rates will change in July so he needs to lock in before that. I'm just a little confused about the whole thing. They are like vultures.

They are like vultures.

Yes, yes they are!

Most loan consolidation companies will add a much higher rate of interest than normal, or put the loan over a much longer period, both ways taking more money from you!

If you can avoid them, then do!

Rates are going up. A reputable Loan consolidation will take the outstanding loans and lump them together under one. Usually at a favorable interest rate. My daughter has saved considerably by consolidating.

The advantage to the lenders is that these are guaranteed loans, subsidized by the govt.