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LOCK IN YOUR LOW RATE!
Consolidate your student loans with industry leading borrower benefits.
Starting as low as 6.22%
Loan terms up to 30 years depending on balance.
No pre-payment penalties for early payment.
Apply today and stop giving your money away.
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Student Loan Consolidation FAQ
Frequently Asked Questions about Student Loan Consolidation
If you have questions about student loan consolidation, look no further. Here is everything you need to know about federal student loan consolidation, private student loan consolidation, and the options that are available to you. If you have any further questions, don’t hesitate to call (888) 726-1611 to speak with one of our knowledgeable associates.
Federal Loan Consolidation FAQ
1. Can I consolidate my federal loans if I am in default status?
2. Can I reconsolidate my federal student loans after the first consolidation?
3. How long will it take to process and approve my application for federal loan consolidation?
4. Is it better to begin a federal loan consolidation program while I’m still in the grace period (six months after graduation)?
5. What about the interest rate?
6. What are the advantages and disadvantages of federal loan consolidation?
7. Which federal student loans are eligible for federal student loan consolidation?
8. Will I be charged any fees for federal loan consolidation?
9. Will I be charged late fees for any payments made after the due date?
10. Will I keep all of the federal benefits of my loans if I consolidate?
Private Loan Consolidation FAQ
1. After consolidating, can I refinance again in the future?
2. Can I consolidate federal and private student loans together?
3. Can I consolidate my private student loans while I’m still in school and continue the deferment program?
4. Do I need a cosigner?
5. Do you have a minimum loan amount for private loan consolidation?
6. How do I know if I qualify for private loan consolidation?
7. How long does private loan consolidation take?
8. How long will I have to pay my private consolidation loan?
9. What about the interest rate?
10. What happens if I can’t make a private loan consolidation payment?
11. Which types of loans are eligible for private loan consolidation?
Federal Loan Consolidation FAQ
1. Can I consolidate my federal loans if I am in default status?
You can only consolidate student loans that are not in default status, and any loans you have which are currently in default must be brought up to date before including them in any consolidation program.
2. Can I reconsolidate my federal student loans after the first consolidation?
Since consolidation refers to the combining of two or more loans, you can only reconsolidate if you have more eligible federal student loans that can be combined with the initial consolidation loan.
3. How long will it take to process and approve my application for federal loan consolidation?
It could take anywhere from four to ten weeks, depending on how long it takes for all of the lenders to report your current payoff balances.
4. Is it better to begin a federal loan consolidation program while I’m still in the grace period (six months after graduation)?
You will be able to lock in a lower rate ( about 0.6 percent lower) by consolidating Stafford Loans in the grace period rather than during repayment.
5. What about the interest rate?
The interest rate for federal loan consolidation is determined by weighing the average of the current interest rates of all the student loans, and rounding that up to the nearest .0125 percent.
6. What are the advantages and disadvantages of federal loan consolidation?
The principal advantages of consolidation are having one monthly payment, securing a fixed rate and being able to choose flexible loan terms of up to 30 years. There really aren’t any disadvantages to federal loan consolidation, though, other than one small issue regarding the Federal Perkins Loan. These types of loans are usually subsidized by the government while the student is in deferment or still in school, but not after consolidating.
7. Which federal student loans are eligible for federal student loan consolidation?
Stafford Loans, Plus Loans, Consolidation Loans, Perkins Loans, Heal Loans, NSL Loans, HPSL Loans and all Direct Loans.
8. Will I be charged any fees for federal loan consolidation?
No. There are no fees, and there is no credit check required of the applicants.
9. Will I be charged late fees for any payments made after the due date?
You will have a 15 day grace period before your payment is considered late. After that, the typical late fee for a federal loan consolidation is 4 to10 percent of the monthly payment amount.
10. Will I keep all of the federal benefits of my loans if I consolidate?
You will keep advantages such as deferment, forbearance, interest tax deductions and the death and disability benefit. And if you have both subsidized and unsubsidized loans, they will still be split up when you consolidate, in case you want to further your education with more student loans or apply for deferment.
Please call (888) 726-1611 if you have any further questions about federal loan consolidation.
Private Loan Consolidation FAQ
1. After consolidating, can I refinance again in the future?
Yes, unlike federal loan consolidation, you can refinance as many times as you’d like without any prepayment penalties.
2. Can I consolidate federal and private student loans together?
No, because federal student loans are subject to federal terms and conditions that do not apply to private student loans. It is advisable to take advantage of the rates and terms that are available for federal student loans separately, since the government benefits would be lost by combining those loans with private ones.
3. Can I consolidate my private student loans while I’m still in school and continue the deferment program?
No, you must begin making payments on your private consolidation loan immediately, so it’s best to wait until after graduation if you want to continue taking advantage of deferment. Private loan consolidation is meant for borrowers who have already begun repayment, or who are about to begin it.
4. Do I need a cosigner?
A cosigner isn’t required, but borrowers who do not meet certain eligibility requirements might have a second chance at applying if they are able to find someone with good credit who is willing to cosign. We offer a cosigner release benefit for borrowers who use this option after they are able to make 48 consecutive, timely payments.
5. Do you have a minimum loan amount for private loan consolidation?
Yes, the minimum private student loan balance to consolidate is $7,500.
6. How do I know if I qualify for private loan consolidation?
We can tell you whether you (and/or your cosigner) qualify in approximately 10 minutes, after which we will need to collect some of your loan documents to complete the process.
7. How long does private loan consolidation take?
The consolidation process should be complete within one month, depending on whether you are able to provide the required documents proving income, expenses and private student loan balances.
8. How long will I have to pay my private consolidation loan?
Our private loan consolidation program has a repayment term of 25 or 30 years, depending on the balance. You can also pay the balance off early if you start earning more income, without any prepayment penalty.
9. What about the interest rate?
The interest rate for private loan consolidation is determined based on the credit history of the applicants.
10. What happens if I can’t make a private loan consolidation payment?
You will have one year of forbearance, in which payments will not be required, that is available to use as necessary.
11. Which types of loans are eligible for private loan consolidation?
Any existing private student loans are eligible for private loan consolidation, but federal student loans, home equity loans and credit cards are not eligible. If you are unsure whether a loan may be eligible, please contact us at (888) 726-1611.
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