Is there an application fee or credit check required to consolidate?
No. It is illegal for lenders to 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 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).

What if my loans are all with one lender?
In the case that your loans are funded through a single lender, federal regulations oblige you to first approach that lender for consolidation. However, if that lender is unwilling or unable to offer you a Federal consolidation loan, or has declined to provide a consolidation loan with an income-scaled repayment option, Federal regulations allow us to then offer you our consolidation loan.

Can my spouse and I consolidate our education loans into one consolidation loan?
Yes. A shared consolidation loan between spouses is available to you at your request. However, we sincerely do not recommend it because these loans include a joint-and-several liability clause that makes you financially responsible for repaying the portion of the debt owed by a deceased and disabled spouses, or possibly your ex-spouse too. Furthermore, to obtain a deferment for a consolidation loan between spouses, both partners must meet eligibility requirements for such a deferment.

When does repayment begin?
Repayment on your Consolidation Loan must begin within 30 days of its funding date. Once your loan becomes funded, you will receive a Loan Consolidation Disclosure Statement and Repayment Schedule from the service provider of your new loan.

What if I want to make more than the minimum loan payment each month?
No problem, you have ample flexibility, and can shorten your overall loan term and decrease your interest costs by increasing your monthly payments. By doing so, any extra money you send in each month is put against 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 part or your entire consolidation loan early without incurring a penalty or fee charge.

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?
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. If you consolidate all of your eligible FFELP loans, deferments are generally available.

What are my forbearance options?
Forbearance will temporarily delay and/or reduce your loan payments, although interest charges will continue to accrue.

Should I continue payment on the student loans that I am consolidating while my application is processing?
Yes. It is vital that you continue to make all of your regular payments on those loans you've selected to consolidate pending your new Loan Consolidation Disclosure Statement and Repayment schedule.

Can I add loans to my Consolidation Loan after it has been processed?
Yes. You have a window of 180 days after your Consolidation Loan's funding date in which additional eligible loans can be tagged on to your consolidation loan. Please contact your new loan service in order to add a loan(s).

What is the grace period discount?
If you consolidate your Federally Guaranteed Student loans during your grace period, you get to keep the 0.6% interest rate reduction that would have otherwise expired when you enter repayment status.