Student Loan Consolidation

The 'student loan consolidation' forum is exclusively about this subject. Browse through the available topics for more info. Here is one link to begin with.

http://www.debtconsolidationcare.com/forums/consolidate-studentloan.html

What type of student loans you have? Did you take forbearance in the past? A little more about your situation will help in understanding things better.

heinlken_uop: I would like to recommend American Education Services. I just consolidated all of my student loans with them and they have pretty good interest rates too. Customer services reps are good too with dealing with any problems you might have. They even overnighted my paperwork to me when I was ready to consolidate my loans.

heinlken_uop: I consolidated my loans recently with NextStudent (http://www.nextstudent.com/). They were good. They offer a locked in discount on your interest rate which I guess others do not and a personal advisor. That way you deal directly with one person, not the first one who answers the phone.

I would try DebtHelp.com to consolidate your student loans. There is a section on the site dedicated to student loan consolidation, so you should be able to find what you need based on your circumstances.

Q: What is a Consolidation Loan?
A: A Federal Consolidation Loan combines several existing federal student loans into one new loan. You can lock in a single fixed interest rate and enjoy the convenience of one lower monthly payment.

Q: How is the interest rate calculated?
A: The interest rate for a Federal Consolidation Loan is set according to federal law and 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%.

Q: How can I consolidate my loans with the grace rate?
A: You have the option of consolidating your loans during your grace period and taking advantage of the grace rate which is .60% lower than the repayment rate for loans disbursed prior to July 1, 2006. It is important to remember that when you consolidate your loan in the grace period, you will be waiving the remainder of your grace period and your loan will immediately enter repayment. In order to receive the grace rate on your Federal Consolidation Loan and still take advantage of as much of the six-month period as possible, you should submit your application at least 60 days before your grace period expires.

Q: Will the reduced interest rate that I am receiving due to borrower benefits on my existing loans be used in calculating the fixed interest rate on my new Federal Consolidation Loan?
A: 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 interest rate will be 6.80%.

Q: How can I find out what my Consolidation Loan payment will be?
A: To estimate what your payments and total amount of interest paid may be, input various interest rates into the Loan Consolidation Calculator. After your application has been approved, the disclosure and monthly account statement will include your exact payment amount and interest rate.

Q: How do I know if I am eligible for a Consolidation Loan?
A: If all of your federal 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 your current holder, and provide evidence of that to your lender. Loans subject to a judgment or wage garnishment not eligible for consolidation.

Q: Where do I apply for a Consolidation Loan?
A: Various lenders offer Federal Consolidation Loans for your eligible loans, including Federal Direct Student Loans. When comparing lenders, be sure to strongly consider those who offer conveniences such as online application and online account management in addition to excellent customer service. Be sure you have the following student loan information available when applying:

Name and address of each student loan creditor
Current loan balances
Current interest rates
Q: Does it matter which lender I select?
A: Yes, your choice of lender is very important. Look for an established, reputable lender offering proven customer service and borrower benefits. Such benefits include reduced rates for on-time payment or automatic payment that can save you hundreds or even thousands of dollars.

Q: What is the maximum/minimum loan limit for a Consolidation Loan?
A: There is no limit to the dollar amount you can consolidate.

Q: How much is this going to cost?
A: There are no application or processing fees. And, there is no penalty for early repayment.

Q: What if I forget to consolidate one of my eligible student loans?
A: You can add an eligible student loan that you forgot to consolidate into your new Consolidation Loan if the loan is added within 180 days of the original date of your Consolidation Loan. You won't have to apply for another Consolidation Loan.

Q: If I have already consolidated my student loans, can I obtain a new Consolidation Loan?
A: Once you have consolidated your student loans, you can only obtain a new Consolidation Loan if you either have an eligible student loan that was never consolidated or you have received a new eligible student loan since the date of the original consolidation.

Q: Once my student loans are consolidated, is there a way to "unconsolidate" them?
A: No. The original student loans are paid in full and cannot be re-created. Once consolidation begins, there is no way to reverse the process.

Q: Should I keep making payments on my student loans while I'm waiting for my Federal Consolidation Loan to be processed?
A: Yes, continue to make all regular payments. You will receive a repayment disclosure which will include your repayment schedule when your Federal Consolidation Loan has been completed.

Q: How long will it take for my application to be processed?
A: Depending on the number and type of loans you currently have, it takes approximately six to eight weeks for the Consolidation Loan application to be processed.

Q: When will I have to make my first payment?
A: It is usually due within 45 days after the consolidation has been completed. You will receive a repayment disclosure that will identify your payment due date.

Q: Are there any pre-payment penalties?
A: There are no pre-payment penalties.

Q: Where can I find my student loan information for the consolidation application?
A: If you are in repayment, look on your most recent statement. If you are in grace or in a deferment/forbearance, look on the 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