If you have something you can sell for $5 today, but in a couple of months you will only be able to sell it for $1, what do you do? Easy —- sell as many as you can by whatever means necessary during the next couple months.

Many of the student loan consolidation direct marketers are facing this dilemma. Under the proposals passed by Congress, consolidation loans that currently sell for a 5% premium will probably earn only about a 1% premium if the proposed changes go into effect on October 1, 2007.

Lenders will be rushing to fund as many consolidation loans as possible in the coming months, so your students’ mailboxes are about to be stuffed fuller than ever. But before your students jump at the “Sale Ending September 30th —- apply now” offer, make sure they evaluate if consolidation is right for them.

Hint —- our “Consolidation Mythbusters” brochure is a good place to start.