FAQs
How does Federal Consolidation work?
The Federal Consolidation program takes your eligible Federal Student Loans and combines them into one single loan with a fixed interest rate and a lower monthly payment. Once the loan holder verifies the loan information and there are no discrepancies, the loan will be completed. Your new lender will send the payoff amount to your current loan holders and those loans will be show as paid off. This entire process takes anywhere from 6 to 9 weeks. We recommend that you continue payments on your current loans until you receive your information packet via mail.
What if I leave a loan out of my consolidation?
Students have 180 days after loans have been consolidated to include any additional Federal loans.
Can I change my repayment plan?
Yes, you can change the repayment plan once a year without any fees or penalties. This way you can adjust your consolidation loan to fit your current financial status.
How is my new interest rate determined on the consolidation loan?
Interest rates on Federal Student Consolidation Loans are determined based upon the weighted average of your current interest rates rounded up to the nearest 1/8%.
Can I pre-pay my consolidation loan?
Yes. There are not any pre-payment penalties with this loan, therefore you can pay it off as quickly as you would like