How long will it take to consolidate my loans?
It only takes three to four weeks for your Consolidation Loan to process once your application information is received. You'll receive a new Loan Consolidation Disclosure Statement and Repayment Schedule from your loan servicer once processing is complete.

Is there an application fee or credit check required to consolidate?
No. By law, lenders may not charge an application fee or perform a credit check under a Federal Consolidation Loan program.

How is the interest rate on my new loan determined?
Your Consolidation Loan features a fixed interest rate that is based on the weighted average of the interest rates of the loans you consolidate (rounded up to the nearest 1/8th percent)

What if my loans are all with one lender?
Federal regulations require that if your loans are funded through a single lender you must first approach that lender for consolidation. If that lender is unable to offer you a Federal consolidation loan or has declined to provide a consolidation loan with an income-sensitive repayment option, Federal regulations permit us to offer you our consolidation loan.

Can my spouse and I consolidate our education loans into one consolidation loan?
Yes. A spousal consolidation loan is available to you at your option. However, it is not recommended since such loans include a joint-and-several liability clause that holds you responsible for repaying the portion of the debt owed by a disabled spouse, deceased spouse, or even your ex-spouse. Also, to get a deferment for a spousal consolidation loan, both partners must meet eligibility requirements for a deferment.

When does repayment begin?
You are required to begin repayment on your Consolidation Loan within 30 days of its funding date. Once your loan has been funded, you will receive a Loan Consolidation Disclosure Statement and Repayment Schedule from the servicer of your new loan.

What if I want to make more than the minimum loan payment each month?
You have the flexibility to shorten your overall loan term and decrease your interest costs by increasing your monthly payments. When you do this, that extra money you send in each month is applied directly towards the principal balance of your new fixed interest rate loan, thereby allowing you to save on interest costs and pay your loan off faster.

Are there any fees or penalties associated with early repayment?
No. You can repay your consolidation loan early without a penalty or fee.

How long is the payback period for a Consolidation Loan?
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.

What are my deferment benefits?
Under certain 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. If you consolidate all of your eligible FFELP loans, deferments are generally available while you are:

1. Enrolled at least half time at an eligible school;
2. Engaged in a full time course of study in a graduate fellowship program;
3. Engaged in a full time rehabilitation training program for individuals with disabilities     (if the program is approved by the Department of Education);
4. Conscientiously seeking, but unable to find, full-time employment; or
5. Experiencing an economic hardship as determined by federal law, including service as a Peace Corps volunteer.

If all your FFELP loans were not consolidated, the deferment options available to you will be based on the deferment provisions that are in effect for any outstanding loan(s) not consolidated provided the deferment is authorized for consolidation loans.

What are my forbearance options?
A forbearance temporarily delays or reduces your loan payments, however interest charges continue to accrue. Forbearance may be granted under the following circumstances….

1. Financial hardship
2. Illness.

Under Federal regulations your lender/servicer is generally not required to grant a forbearance and may require you to provide reasons for the request and other information. Your lender/servicer may grant a forbearance to eliminate a delinquency that persists even though you are making scheduled installment payments, or may grant and administrative forbearance for up to 60 days in order to collect and process documentation supporting your request for a deferment, forbearance, or change in repayment plan. The following circumstances require your lender/servicer to grant you a forbearance:

1. Serving in a medical or dental internship or residency program (if you meet certain     criteria);
2. Serving in a national service position for which you received a national service     education award under the National and Community Service Trust Act of 1993;
3. Qualifying for partial repayment of your loans under the Student Loan Repayment     Program, as administered by the Department of Defense; or
4. If you have a monthly debt burden for Title IV loans that collectively equals or     exceeds 20% of your total monthly gross income.

Should I continue payment on the student loans that I am consolidating while my application is processing?
Yes. It is extremely important to continue to make all of your regular payments on the loans that you have selected to consolidate until you receive your new Loan Consolidation Disclosure Statement and Repayment schedule from your new loan servicer.

Can I add loans to my Consolidation Loan after it has been processed?
Yes. You have 180 days after your Consolidation Loan's funding date to add additional eligible loans to your consolidation loan. To add a loan, contact your new loan servicer. What is the grace period discount? If you consolidate your Federally Guaranteed Student loans while you are in your grace period, you will retain the .6% interest rate reduction that would, otherwise, expire when you go into repayment status.