Federal student loan consolidation
1)Student loan debt consolidation
Student loan debt consolidation is the excellent alternative to debt eradication. Get student loan debt consolidation today and save.
Have you heard the buzz on student loan consolidation The din grows on and on, gaining in velocity and fury. Your student loan consolidation service is right around the virtual corner. Curious about the rewards and benefits and wonder if addressing your student loan debt via this channel is the right choice for you Well, you're in the right place, any time. Get more detailed information on how economically viable it is for you to choose this popular form of loan consolidation when you fill out our secure, FREE form today! You too can make the future in which you deal with student debt much more enjoyable and affordable.
The facts on student loan debt consolidation
Right now, we are experiencing unprecedented low rates. Sure. But why is this happening now - why wasn't it happening five years ago Well, we'll tell you why. Interest rates are directly linked to Treasury bill rates - they are directly impeded by the fluctuations in T-bills. Guess what T-bills are also at record-breaking lows right now. Consequently, hundreds of thousands have followed suit, as they have been able to see the value of student loan debt consolidation.
Fixed vs. variable rate on your student loan debt consolidation
What is the benefit of a fixed rate A fixed rate is (federally - in this case) guaranteed for the lifetime of your repayment duration. A variable rate is flexible and dependent on fluctuations with interest rates and T-bill rates (see: the economy). The student loan you are currently paying is presumably being paid with a variable rate. This means you are vulnerable to hikes in interest. However, if you elect to check out our student loan debt consolidation programs and lock in a fixed rate - you will never have to worry about paying your interest on your loans according to the economies mandates.
Simplification, it rules - with regard to student loan debt consolidation
Simple as that. Find out how you can eliminate student loan debt using one of our student loan debt help programs. Lock in your fixed rate (based on the weighted average of all of your existing loans). Our current rate average is anywhere from 2.9 to 4.25 percent. This may enable you in reducing your Stafford Student Loan debt by as much as 65%. Use our student loan consolidation programs to get a lower monthly payment, fixed interest rate, flexible spending programs and single billing. The benefit of single billing is that you can track the progress or your payment history with much more speed and efficacy.
Use us, use us - for student loan consolidation
When you use our student loan debt consolidation pipeline to gain access to the best student loan consolidation companies, you are reducing your rates and, in this way, paying a lot closer to the principal. The principal is the amount you borrowed in the first place - before any extraneous charges were tacked on. Isn't that a refreshing feeling - to know that you're not being sidetracked by inflated charges To know that your progress in getting your student loan debt overcome will not be made more challenging due to charges that are beyond your control
Student loan debt consolidation makes it possible
This is all within the realm of the plausible when you use our student loan debt consolidation programs. Start the process of receiving the best student loan consolidation help ever when you complete the attached, secure, no-obligation form. Don't delay your free preliminary consultation. Find out what you can do to receive the best student loan debt relief ever. Make way for your future - your future without debt. Rake in savings when you make your move to consolidate student loan debt. When you save money in this way, you'll be more prepared to move onto the things you really care about, like family and travel, and so forth. Free up your time and money to enjoy a better quality of life.
Act now to lock in your historically low interest rate
Do yourself the favor of acting soon to lock in your fixed rate on your student loan debt consolidation programs. Although the next possible opportunity for Congress to veto the fixed rate, which would make only the variable rate available, won't come until summer of 2006, the reason you should act now is to lock in one of the historical, record-breaking low interest rates we are currently enjoying.
2)Advantages of student loan consolidation
Wield the Federal Student Loan Consolidation Program wisely. It is a powerful resource that will streamline time and expenses during the repayment period of your federally guaranteed student loans. Congress established the Federal Student Loan Consolidation Program in response to growing demand and a sluggish economy. By providing a reduced payment, a secure, fixed rate and flexible payment plan - your repayment plan will be cost effective. Single billing simplifies your book-keeping and makes it easier to track your payment progress.
Qualification is simple. There is no credit check or income verification. Unlike other loans, you need not proffer any collateral and there is never any family income ceiling - Government finds that impractical for the purpose of student loans.
No Extras. You will enjoy only one lower payment each month. Unlike your existing loans with variable rates that leave you vulnerable to inflated interest rates, you can enjoy a lower fixed rate for the life of the repayment period of your loans. It will never change. Lock in the low rate now. Enjoy the added benefit of your 14-45 day grace period before commencing with your first consolidation payment.
Benefits and Rewards: If you choose to pay early, do so without penalty. Find out from your tax consultant which interest is tax deductible. Learn more about flexible repayment options. Overall, you will be sure to reduce your debt to income ratio because you'll be paying off more of the principal only - which is the amount borrowed in the first place!
Escape the variable rate trap; which is utilized for most Stafford and PLUS loans. Lock in your low fixed rate loan today and enjoy the absolute certainty that this will be the rate you will pay for the life of the loan. No hidden surprises. One low rate. Period.
3) Loans eligible for consolidation
Eligible Federal Student Loans
The following loans are eligible for federal student loan consolidation:
Federal Stafford Loan (both subsidized and unsubsidized)
Federal Direct Loan (both subsidized and unsubsidized)
Federal Perkins Loan*
Health Professions Student Loan (HPSL)*
Nursing Student Loan (NSL)*
Federally Insured Student Loan (FISL)
Auxilary Loan to Assist Students (ALAS)
Federal Supplemental Loan for Students (SLS)
National Direct Student Loan (NDSL)*
Health Education Assistance Loan (HEAL)
Federal Parent Loans for Undergraduate Students (PLUS)
Loan for Disadvantaged Students (LDS)
These loans may already have low, fixed interest rates. Carefully consider whether to consolidate loans with already low fixed interest rates. Student loan consolidation may increase the interest rate charged on these loans and add to the total cost of your loans.
Please Note: You can consolidate a prior Federal Consolidation Loan into a new Federal Consolidation Loan only if you are consolidating at least one other eligible student loan.
4)Consolidation process
When a borrower consolidates loans in the Direct Consolidation Loan Program, the U.S. Department of Education (Department) pays off the original Federal education loans and originates a new loan for the total amount of the loan(s) consolidated. Here's how that works:
Step 1: Application Review
We review the borrower's application and enter it into our system. If there is missing or incorrect information, we attempt to contact the borrower directly and/or send a letter identifying the needed information. If a borrower applied for the loan by phone or through the web, the Loan Consolidation Department sends a promissory note to be signed and returned by the borrower. The borrower has 14 days to provide the information to us or the application is cancelled.
Step 2: Loan Verification
We request verification of the information on the borrower's application to determine each loan's eligibility for consolidation and its payoff balance. Currently, we electronically verify Direct Loans, defaulted loans held by the Department, loans serviced by loan holders enrolled in our Electronic Verification Certification (EVC) service, and loans held by Sallie Mae. For all other loans, we send a verification certificate to each loan holder to obtain the required information. Loan holders have ten business days to complete the verification certificate and return it to us.
Step 3: Income Contingent Repayment Processing
A borrower who must use the Income Contingent Repayment (ICR) Plan due to a defaulted loan OR who selects the ICR plan as a matter of choice must submit an "ICR Consent to Disclosure of Tax Information" form. This form, which verifies income information, is forwarded to the IRS for approval. If the waiver is denied, we request additional information from the borrower.
Step 4: Loan Statement Sent to Borrowers
A loan statement summary package is mailed to the borrower and payments are mailed to the lenders simultaneously after his or her loans are verified.
Step 5: Payment to Loan Holders
If a loan is not in default, we send the loan pay-off to the loan holder or credit the borrower's Direct Loan account. If a loan is in default, the Departments Default Resolution Group or the Guarantee Agency will receive an electronic payment manifest, SF-1081, for the principal and interest, and a check for the collection costs. Participants in EFT (Electronic Funds Transfer) receive these payments electronically.
When a loan holder receives a payment from the Consolidation Department, the loan holder(s) is required by regulation to fully discharge the debt upon receipt of proceeds and notify the borrower that the loan(s) has been paid in full, even if we underpay the loan.
Any payment a borrower makes to the previous loan holder(s) after the loan(s) is paid off is forwarded to us as an overpayment. These payments are applied to the consolidation loan balance. If our payment does not satisfy the borrower's account balance, the loan holder is prohibited from billing the borrower and must notify us of the underpaid amount. We work with the loan holder(s) to resolve any underpayment or overpayment issues. (See "How do I request an underpayment or return an overpayment" or "What are the Tolerances for Under and Over Payments")
Step 6: Account Set-Up
Borrowers' Direct Consolidation Loan accounts are set up when their loans are paid off. Once account set up is complete, borrowers receive important information about their loan status and payment due dates. Normally, their first payment is due within 60 days of the disbursement of the Direct Consolidation Loan.
NOTE: Borrowers are required to continue making payments with their current loan holder(s) until they receive written notification that their loan(s) has been successfully consolidated.
Step 7: Adding Loans to an Existing Direct Consolidation Loan
Borrowers have 180 days after the first disbursement of their consolidation loan to add a loan(s) to the consolidation by completing the Request to Add a Loan to an Existing Federal Direct Consolidation Loan [PDF Format (28K)] form. After 180 days, the borrower must complete a new application.
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