Student loan consolidation faq

How do I apply, or get started?

The easiest way to get started with your loan consolidation is to fill out an application either by mail, or online.

What are the benefits of consolidating?

●    Your credit score and history will be improved
●    Your overall standard of living will be much higher
●    You can cut your monthly payments in half
●    Get a fixed interest rate that will not increase or decrease.

When will the loan consolidation processing procedure actually occur, how long to I have to wait?

Normal processing times for a student loan consolidation procedure are somewhere between 5 – 10 weeks, perhaps less if it’s a low volume period of activity.

How much do I need to owe in order to consolidate?
Most organizations will require that you be indebted a minimum of  $10,000 – $20,000 before they will even consider letting you sign a loan consolidation agreement with them.

Any hidden fees that I should be worried about?
Nope.  Any honest loan consolidation company should not charge any applicable fees or hidden annual costs from its constituents.

Do I still need to make payments to the Federal program until my consolidation program takes effect?

Yes, you should consider the terms of your federal loan program agreement to still be in effect until the consolidation program has officially taken effect.

What are some of the most common repayment plans that are available?
●    Fixed – The amount you owe per month will never decrease or increase for as long as the loan is in effect.
●    Inclined – The total amount of each monthly payment will steadily increase by 2%-7% over a fixed period (usually 1-4 years).  The amount of increase is determined by the specifics established in your loan agreement.
●    Long term – Establishes a payment schedule designed to eliminate the loan within a 20-25 year period.  The specific terms of such an agreement will have to be covered on an individual basis.
●    Variable – The actual amount of your monthly payment will be calculated according to the fluctuations in your income that particular month.  This is a great solution for those that are self employed or perhaps operate a small business.

Do I have the authority to choose my own plan?
Absolutely!  No one knows your own finances or abilities better than yourself.  However, you might want to seek out the advice of a qualified loan specialist, lawyer or accountant if you have any qualms or concerns at all.

What if I want / need to change repayment plans?
It’s definitely possible. Most honorable organizations will allow you to switch from one plan to another depending on your circumstances. There may be limitations however in the number of times that you can switch loan repayment programs on an annual basis.

What types of loans can you consolidate?
●    Federal Nursing Student Loans
●    Health Professions Student Loans
●    Federal Direct Consolidation loans
●    Federal Subsidized and Unsubsidized Stafford loans
●    Federal Supplementary Loans for Students
●    Direct Subsidized and Unsubsidized Stafford loans
●    Federal PLUS loans
●    Federal Perkins loans
●    Health Education Assistance Loans
●    Consolidation loans
●    Federal Direct PLUS loans