- What is consolidation?
A Federal Consolidation Loan gives student loan borrowers an option which makes repayment easier by combining multiple loan payments into one simple loan with a lower monthly payment.
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- What loans are eligible for consolidation?
- Subsidized Federal Stafford Loans
- Unsubsidized Federal Stafford Loans
- Direct Subsidized Stafford Loans
- Direct Unsubsidized Stafford Loans
- Federal PLUS (parent) Loans
- Direct PLUS Loans
- Grad PLUS Loans
- Federal Supplemental Loans for Students (formerly Auxiliary Loans to Assist Students (ALAS) and Student PLUS Loans)
- Federal Perkins Loans (formerly National Defense / National Direct Student Loans (NDSL)
- Subsidized Federal Consolidation Loans
- Unsubsidized Federal Consolidation Loans
- Direct Subsidized Consolidation Loans
- Direct Unsubsidized Consolidation Loans
- Health Professions Student Loans
- Health Education Assistance Loans
- Federal Insured Student Loans
- Federal Nursing Loans
If you're unsure about the types of loans you have, please call us at (800) 942-3520 and one of our loan agents will be happy to assist you.
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- When am I eligible to consolidate?
If you meet the following criteria, you are eligible to consolidate:
a. $10,000 or more in eligible Federal Student Loans
b. All loans being consolidated must be in grace period, deferment, forbearance or in repayment status when the consolidation loan is funded.
c. If you are still in school, you can apply for a consolidation loan up to six months before you graduate.
d. If your loans are in default, we may still be able to help. Please contact one of our loan agents for assistance.
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- How do I apply?
The application process is very easy!- Call one of our loan agents at (800)942-3520 to start the process
- Download the application from our website
- Have the application mailed to your home by contacting one of our loan agents
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- What do I need to apply?
- Date of birth
- Address
- Phone
- Driver's License (state & number)
- Email address
- Names, addresses, and phone numbers of two references (these references won't be contacted)
- Current loan information - contact one of our loan agents to expedite and verify your loan information
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- What is the interest rate?
The interest rate for a Federal Consolidation Loan is the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent. This rate is fixed for the life of the loan and cannot exceed 8.25%
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- How can I consolidate my loan with the grace rate?
You have the option of consolidating your loan during your grace period. It is important to remember that you must indicate the month and the year of your grace end date in #26 on the Consolidation Loan application if you would like to hold the processing of your Consolidation Loan until the end of your six-month grace period. The rates in effect at the time that you apply for your Consolidation Loan will be used in the weighted average calculation to determine the rate on your Consolidated Loan.
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- Will the reduced interest rate that I am receiving due to borrower benefits on my existing loans be used to calculate the fixed interest rate on my new Consolidation Loan?
No. Interest rate reductions received as borrower benefits on existing loans will not be considered when determining the applicable interest rate on your consolidation loan. For example, if the applicable rate on your existing loans is 6.80%, but you were receiving interest rate reductions as a borrower benefit that reduced the interest rate to 5.80%, the interest rate used to calculate your new Consolidation Loan will be 6.80%.
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- How can I find out what my Consolidation Loan payment will be?
To estimate what your payments and total amount of interest paid may look like, input various interest rates into our Loan Consolidation Calculator. After your application has been approved, the disclosure and monthly account statement will include your exact payment amount and interest rate.
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- How do I know if I am eligible?
If all of your loans are in grace, repayment or in a deferment/forbearance, you may be eligible for a Federal Consolidation Loan. Your loans that are in an in-school status cannot be consolidated until you graduate or leave school. If you have defaulted on any of your loans, you need to make satisfactory payment arrangements with the current holder and provide evidence of that to Student Loans Of America. Loans subject to a judgment or wage garnishment are not eligible for consolidation.
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- Can I consolidate my loans while I am attending school?
If you are currently a full or half-time student, you can apply for a Consolidation Loan upon graduation. For loans disbursed prior to July 1, 2006, the interest rate during the grace period is 0.60% lower than the Stafford repayment rate. By consolidating while you are in grace, you will have the opportunity to secure a lower interest rate and start paying down your student loans.
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- Can I get an in-school deferment on my Consolidation Loan?
If you are attending school at least half-time you will be eligible for an in-school deferment on your Consolidation Loan. Keep in mind that you will need to begin repaying your Consolidation Loan immediately upon graduating, withdrawing, or dropping to less than half-time enrollment status.
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- How do I apply for a Consolidation Loan?
Apply today to lock in a low fixed interest rate. Call (800) 942-3520 and one of our agents will get you started on the very simplistic application process!! We will fill out the application for you and send it to you electronically or by mail.
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- What is the maximum loan limit for a Federal Consolidation Loan?
There is no limit to the dollar amount you can consolidate.
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- How much is this going to cost?
There are no processing or origination fees! No cost whatsoever!! And there is no penalty for early repayment.
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- What if I forget to consolidate one of my eligible student loans?
You can add an eligible student loan that you forgot to consolidate into your new Federal Consolidation Loan if the loan is added within 180 days of the original date of your new Cosolidation Loan. If more than 180 days have passed, you'll need to complete a new federal Consolidation Loan application.
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- If I have already consolidated my student loans, can I enter into a new Consolidation Loan?
Once you have consolidated your student loans, you can only enter into a new Consolidation Loan if you either have an eligible student loan that was never consolidated or you get a new eligible student loan after the date of the original consolidation.
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- Once my student loans are consolidated, is there a way to "unconsolidate" them?
No. The original student loans are paid in full and cannot be unconsolidated. Once consolidation begins, there is no way to reverse the process.
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- Should I keep making payments on my student loans while I'm waiting for my Consolidation Loan to be processed?
Yes, continue to make all regular payments. You will be notified by mail when your Federal Consolidation Loan has been completed. You will receive a repayment schedule at the time of disclosure.
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- How long will it take for my application to be processed?
Depending on the number and type of loans you currently have, it takes approximately 6 to 8 weeks for the Consolidation Loan application to be processed.
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- When will I have to make my first payment?
It's usually due within 45 days after the consolidation has been completed. You will receive a disclosure and a repayment schedule which identifies your payment due date.
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- Are there any pre-payment penalties?
There are no pre-payment penalties.
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- Where can I find my student loan information for the Consolidation Application?
If your are in repayment, look on your most recent statement. If you are in grace or in a deferment/forbearance, look on your disclosure statements that were sent to you when you obtained your loans. These items should provide you with an account number, balance and interest rate. You can also visit www.nslds.ed.gov.
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