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Q. |
How
long will it take to consolidate my
loans? |
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A. |
Within only 3-4
weeks after receiving your
application information, we can
process your consolidation
Loan. Once completed, you will
receive a new loan Consolidation
Disclosure Statement and
Repayment Schedule from your
loan service provider.
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Q. |
Is
there an application fee or credit
check required to consolidate? |
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A. |
No. It is illegal
for lenders to charge an application
fee or perform a credit check
under a Federal Consolidation
Loan program.
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Q. |
How is the
interest rate on my new loan
determined? |
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A. |
Your new
Consolidation Loan features a fixed
interest rate based on the
weighted average of the interest
rates of the loans you chose to
consolidate (rounded up to the
nearest 1/8th percent). Maximum rate is 8.25%.
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Q. |
What
if my loans are all with one
lender? |
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A. |
New legislation allows Student
Financial Advisors to consolidate
your student loans even if they are
all with one lender.
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Q. |
Can my
spouse and I consolidate our
education loans into
one consolidation loan? |
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A. |
As of July 1, 2006 new legislation
prohibits spouses from combinng
their separate education loans into
one consolidation loans.
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Q. |
When
does repayment begin? |
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A. |
Repayment on your
Consolidation Loan begins
45 to 60 days from the date of disbursement..
Once your loan funds, you
will receive a Loan Consolidation
Disclosure Statement and Repayment
Schedule from the service provider
of your new loan.
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Q. |
Are
there any fees or penalties
associated with early repayment? |
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A. |
No. You can
repay part of or your entire
consolidation loan early without
incurring a penalty or fee charge.
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Q. |
How
long is the repayment term for a
Consolidation Loan? |
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A. |
Your new loan repayment term is
based on the total amount of your
outstanding student loan debt - not
just the amount you have chosen to
consolidate (unless they happen to
be the same) and stretches your
repayment term from the
standard ten-year payback schedule
to up to 30 years depending on your loan balance.
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Q. |
What
are my deferment benefits? |
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A. |
Depending on the
circumstances, you have a right to
defer (postpone) repayment of your
new loan. The types of deferments
that are available depend on when
you obtained your Consolidation Loan. Please call us if you have specific questions.
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Q. |
What are my
forbearance options? |
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A. |
Forbearance will temporarily delay
and/or reduce your loan payments,
although interest charges will
continue to accrue. |
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Q. |
Should
I continue payment on the student
loans that I am consolidating while
my application is processing? |
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A. |
Yes. It is vital
that you continue to make all of
your regular payments on those loans
you've selected to consolidate
until you receive your new Loan Consolidation
Disclosure Statement and
Repayment schedule.
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Q. |
Can I
add loans to my Consolidation Loan
after it has been processed? |
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A. |
Yes. You have a
window of 180 days after
your Consolidation Loan's funding
date in which additional eligible
loans can be added on to
your consolidation loan. Please
contact your new servicer in order to add any additiona loan(s) to your consolidation.
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Q. |
What is the
grace period discount? |
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A. |
If you
consolidate your Federally
Guaranteed Student loans during your
grace period, you will receive the
0.6% interest rate reduction that
would have otherwise expired when
you enter repayment status. However,
this only is true for loans
disbursed prior to July 1, 2006.
Loans disbursed after July 1, 2006
will have a fixed interest rate of
6.8% whether they are in grace
period or repayment, there is no
grace discount on these loans.
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It's easy to get started - just Click Here to see if you're
eligible to consolidate your student loans. It takes less
than a minute, you're under no obligation, and it's free!
Or Call, Toll Free (888) 365-5922 |
