Frequently Asked Questions
1. How long
does the consolidation process take?
The process for your Federal Consolidation Loan takes
approximately 45-60 days once your application has been
received back. Once the consolidation is complete you
will receive a new disclosure and repayment statement.
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2. Is there
an origination fee for the Federal Consolidation Program?
No, there are no fees or charges for consolidation.
Also, there is no credit check or income verification.
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3. When
does my consolidation loan begin repayment?
The consolidation loan goes into repayment immediately.
The first payment is within 30-60 days of its funding
date. |
4. Can I
change my repayment plan after the consolidation is complete?
Yes, you would need to contact your servicer to get
the payment plan changed. |
5. Are there
any fees for paying my consolidation loan off early?
No, there are no prepayment penalties. |
6. Can I
add a loan after the consolidation is completed?
Yes, you have 180 days to add in any loan that may
have been left out or any new loan you may have taken.
To add a loan, contact your servicer. |
7. Should
I wait for my grace period to expire before consolidating?
If you consolidate during your grace period your interest
rate is 0.6% less than while in repayment. |
8. How is
the interest rate calculated on a Federal Consolidation
Loan?
All companies must use the same formula as mandated
by the Department of Education. A weighted-average of
all current interest rates are taken and then rounded
to the nearest 1/8th of a percent. |
9. Should
I make payments while my consolidation is being processed?
A borrower has one of two choices: Make about 2-3
months of payments or request a
3-month forbearance from the servicer if eligible. |
10. Can
I consolidate again if I already did so in the past?
If you have taken additional federal student loans
after your last consolidation you can consolidate again.
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If your question was
not addressed within our FAQs,
please contact our Consolidation
Representatives
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Georgia
Cameron
