Q. What is Federal Student loan Consolidation?

A. It’s a free Government program. Simply, it is combining of all your Federal Student Loans into one loan at one fixed interest rate.

Q. I did not know I could consolidate my Student Loans?

A. In our opinion: Students are being made aware of the existence of student loan consolidation more today then ever before. Students are to be given this information in exit interviews.

Q. How do I apply?

Q. What is the fee?

A. It’s free.

Q. Do I need a credit check?

A. No, there are no credit checks.

Q. Can I make extra payments if I want too?

A. Absolutely. We have a no pre-prepayment penalty

Q. Can I change my Terms?

A. Yes, after one full year of making payments.

Q. Is the interest rate fixed and for how long?

A. Yes, the life of the loan.

Q. Do I have to extend my Terms?

A. No. You may keep the same terms.

Q. How is the interest rate determined?

A. By the last day you attended school (not when you graduated and walked with your class), the type of loans you have, and when they were disbursed.

Q. Everyone talks about a “Weighted Interest Rate”. What does this mean?

A. Easy, they mean the fixed interest rate on a Federal Consolidation Loan is a formula. We take your current interest rates and current OPB (outstanding principle balance) and round them up to the nearest 1/8th or 8.25% whichever is less.

Q. What is the Grace period?

A. Grace period is the period in which you do not have to make payments on your Federal Student Loans. You are allowed this period to give yourself time to find employment, etc. You may save up to .60% by consolidating during this period than someone who is in repayment.

Q. How long is the Grace period?

A. The grace period is exactly 6 months, your grace period begins the day you stopped attending class and continues for 6 months (to the day). The following day you will need to start paying on your student loans.

Q. If I consolidate my Federal Student Loans, do I still have the right to deferment and forbearance?

A. Absolutely! When you consolidate your student loans you still maintain your federal rights. You maintain/refresh 3 years of deferment & forbearance for a total of 6 years.

Q. What if I stop going to school? Am I eligible for consolidation?

A. Yes, if you have stopped attending school for 6 months or longer.

Q. I want to consolidate my parent’s loans with mine. Can I do this?

A. No. The reason for this is that you can not consolidate social security numbers together unless it is a Husband/Wife (spousal consolidation).

Q. I just do not know where to start? I am going to school for the first time? What do I do?

A. First, you go to www. Fafsa.ed.gov and fill out the free application for federal assistance (FAFSA FORM). There you can apply for grants, Stafford Loans etc. You will be issued a pin #. They have a phone number to contact them. This form is based on INCOME. Next, talk to the financial aid advisor of the school you plan to attend or have this person help you. Contact us (888) 482-4764 for more help.