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Federal Loan FAQs |
| Q. |
What is a Federal student loan consolidation? |
| A. |
Congress created the student loan consolidation program to simplify repayment and to make payments more affordable for the newly graduated borrower, whose income may not yet be sufficient to afford repayment. |
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| Q. |
Why should I consolidate my Federal student loans? |
| A. |
Consolidating your Federal loans (1) locks in your interest rate, (2) lowers your monthly payment by extending your term, and (3) you only have one monthly payment. By doing all of this, you help increase your credit score and lower your debt-to-income ratio. There are no credit checks, no fees, and no pre-payment penalties. This is 100% FREE. |
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| Q. |
What are the qualifications on consolidating my Federal student loans? |
| A. |
In order to consolidate your Federal student loan you must be in an In Grace period, in Forbearance, in Deferment, or in Repayment. You can’t be in school or in default and you must have more than one loan. Options may still be available you fall into one of these categories. Contact us for a free consultation.
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| Q. |
I'm about to enter repayment, and I received a letter telling me my payment, but I know I can't afford that much every month. Is there a way to lower my payments? |
| A. |
One of the primary reasons for consolidation is to offer the newly graduated borrower a more manageable payment schedule. Student Loans are as unique as the individual and therefore the options are great. By consolidating your student loans, you could reduce your monthly payment by up to 52%. |
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| Q. |
I've never heard of forbearance/deferment before. Does having forbearance/deferment affect my credit in a negative manner? |
| A. |
Actually, placing your account on forbearance will assist in protecting your credit by preventing your loan from being reported to the credit agencies as delinquent. Be careful not to use your forbearance/deferment needlessly though as you only are allowed so much time throughout the repayment of your loan. |
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| Q. |
If I consolidate my student loans and later decide to go back to school, will I be required to continue making payments? |
| A. |
You may defer your student loan payments at any time while you are enrolled in school, be it half-time or full-time. If you are enrolled less than half-time, your lender/servicer may have school forbearance available to postpone repayment. However, when your account is on a forbearance, it continues to accrue interest that you are responsible to pay. Whereas when you are in deferment, the government will pay the interest on the subsidized portion of your loans. |
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| Q. |
My loans are in default, but I want to go back to school. What do I do? |
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To receive additional financial aid you must first remove your loans from a defaulted status. There are several ways to accomplish this goal. The quickest way to remove your loans from a defaulted status would be to pay the loan in full. If you are unable to satisfy your debt at this time you may want to consider our Defaulted Loan Rehabilitation Program. Contact us to discuss your unique situation. |
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| Q. |
I’m ready to speak with someone. How do I contact you? |
| A. |
Call (877) LOAN-153 or email info@consolidationcampus.com or Click Here to Apply. |
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Private Loan FAQs
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| Q. |
What is a Private student loan consolidation and why should I consolidate my loans? |
| A. |
The private loan consolidation program is for borrowers who seek to combine multiple private student loans into one. The benefit behind a private loan is if you only have one loan you can consolidate just that one even if you already consolidated before. By consolidating your loans you (1) lower your monthly payments, (2) ease cash flow in the early years of repayment, and (3) take advantage of a potentially lower interest rate. |
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| Q. |
What are the qualifications on consolidating my Private loans? |
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Being that Private student loans are unsecured loans they base your qualifications off of your credit scores and you’re Debt to Income ratio (DTI). If your credit is poor and your DTI is too high you have the option to get a cosigner. |
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| Q. |
Is a cosigner required? |
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Yes and no. A cosigner is required if consolidating only undergraduate student loans. However, borrowers with a graduate degree can consolidate their loans (both undergraduate and graduate loans) without a cosigner. We recommend that graduate degree holders apply with a qualified cosigner, as it will greatly increase their chance for approval and could provide a lower interest rate. |
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| Q. |
What information will I need to complete the application form? |
| A. |
You will need to have the following information available for you and your co-signer (if applicable):
- Name, address and social security number
- Names, addresses and telephone numbers of two personal references
- Monthly Income and expense information
For Each of the loans to be consolidated:
- Loan Account Number
- Name, address and telephone number of each loan servicer (on your monthly billing statement)
- Outstanding loan balance/expected payoff amount
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| Q. |
My loans are in default, but I want to go back to school. What do I do? |
| A. |
To receive additional financial aid you must first remove your loans from a defaulted status. There are several ways to accomplish this goal. The quickest way to remove your loans from a defaulted status would be to pay the loan in full. If you are unable to satisfy your debt at this time you may want to consider our Defaulted Loan Rehabilitation Program. Contact us to discuss your unique situation. |
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| Q. |
I’m ready to speak with someone. How do I contact you? |
| A. |
Call (877) LOAN-153 or email info@consolidationcampus.com or Click Here to Apply. |
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