LOAN CONSOLIDATION FAQ'S

Got student loan consolidation questions?   EZ Graduate has the answers.

You've received your student loan funding...some of you may still be in school, while others have felt the exhilaration of tossing your cap in the air at graduation.    Now you're faced with the prospect of paying off all that education debt.  

At Student Aid Center we understand that you may want to simplify your payments by consolidating your student loans. As national leaders in the student loan industry, Student Aid Center prides itself on having knowledgeable student loan counselors ready to answer your questions about student loan consolidation.  

Our Educated Student Loan Counselors can answer any other questions you may have, but from our experience we find these are some of the most frequent questions asked by those seeking to consolidate their student loan debt.  

Some of the rules and procedures may seem involved, which is why we encourage you to speak with one of our Student Loan Counselors.   Call us today at 1-888-947-2356.

What is a federal consolidation loan?

Knowing that the cost of education is rising faster than the rate of inflation, the Federal government created the student loan consolidation program to help students and their parents repay their loans affordably.   Instead of having to pay off multiple federal student loans, a Federal consolidation loan repays some or all of your outstanding federal student loans - and you pay just one sum each month.   (Please note:   all federal student loans are not eligible for the Federal consolidation loan.   Please contact our Educated Student Loan Counselors at 1-888-947-2356 to see if your student loan(s) qualify.)  

What is a Private consolidation loan?

With maximum limits far greater than federal consolidation loans, consider learning about this consolidation alternative.

Learn More...

Who is eligible to consolidate a student loan?

All of the following must be true to qualify for a federal consolidation loan:

What student loans can I consolidate?

• Federal and Federal Direct Stafford (subsidized and unsubsidized)
• Federal and Federal Direct PLUS
• Supplementary Loans for Students (SLS)
• Federal Perkins
• Federal Nursing Student Loans (NSL)
• Federal Health Education Assistance Loan (HEAL)
• Federal Health Professional Student Loans (HPSL)
• Health Professions Student Loans (HPSL)
• Loans for Disadvantaged Students (LDS)
• Federal Insured Students Loans (FISL)
• Federal Consolidation Loans
• Federal Direct Consolidation Loans

Why should I choose Student Aid Center for my student loan consolidation?

You have choices when it comes to consolidating your student loans.   Student Aid Center is a national leader in the student loan industry.   We are committed to providing you with more than just student loan money.   We pride ourselves in being a trusted resource for those seeking student loans and student loan consolidation.   Our trained Educated Student Loan Counselors are ready to help you every step of the way.   We've been successfully helping students find money for their education and repayment options for years.   We have a long list of satisfied clients to our credit.   We hope to add you to that list too.   Please feel free to call one of our Educated Student Loan Counselors.

What's the minimum balance I must have to consolidate my student loans?

To consolidate your student loans you must have an outstanding balance of $10,000 in eligible student loans.

Will my interest rate change if I consolidate my loan?

The interest rate on the consolidation will be a fixed rate for the entire term equal to the weighted average interest rates of your consolidated student loans rounded up to the nearest 1/8% not to exceed 8.25%.   Generally, your repayment term is extended which makes your monthly payments more affordable.   For example, if you have only Stafford loans disbursed since July 1, 2005, your new fixed interest rate would be between 4.70% (in grace) and 5.30% (in repayment).   EZ Graduate offers special programs that reduce your interest rates if you sign up for direct debit (.25% off) and make your payments on your consolidation loan on time (1% off).   Call an Educated Loan Counselor at 1-888-947-2356 for more details on how to lower your payments.

Is there a fee to consolidate my student loans?

No.   Your lender pays the fee, not you.

Is there a credit check to consolidate my student loans?

No credit checks are required to consolidate your loans.

What happens if I get a great job and have more disposable income than I anticipated?   Can I pay off my consolidated student loan faster?

Yes!   You can always prepay your loan with no penalties.

What if I've already consolidated my student loans? Can I reconsolidate to lock in the lower rate?

The Department of Education has ruled that you may reconsolidate a previously consolidated William D. Ford Direct Loan.   There is however, a temporary injunction against that ruling thus enabling some borrowers to reconsolidate. To find out if a judgment has been made in the case and if you're eligible to reconsolidate, please contact our Educated Student Loan Counselors at 1-888-947-2356.

What if I've received a new loan since I consolidated?

If you've received a new loan since you've reconsolidated your student loans, or you omitted a student loan from your original reconsolidation process, you may be able to reconsolidate.   To find out if you can please contact our Educated Student Loan Counselors at 1-888-947-2356.

How do I get the lowest student loan payments available today - and reduce my interest rate?

Student Aid Center likes to reward those who make timely scheduled payments (within the first 15 days of the due date each month) on their new consolidation loan.   If you pay your loan on time, Student Aid Center will automatically reduce your interest rate by one full percentage point and leave it there as long as you continue to make on-time payments.

Can I pay my student loans electronically?

Yes!   And if you pay your student loan electronically (direct debit payments from your checking or savings account), you can reduce your interest rate by an additional .25 of a percentage point, as long as you continue to make your payments electronically.   Click here to sign up for electronic payment.

What if I pay electronically AND on time?

Then you're in luck!  Student Aid Center will combine the incentives and reduce your interest rate by 1.25%. This will allow you to save hundreds, even thousands of dollars over the life of your loan - putting more money in your pocket!

How long will it take for me to repay my student loans if I consolidate?

Depending on the outstanding balance on your federal student loans (even those you may wish to leave out of the consolidation), you have up to 30 years to repay your student loans. The examples below show you how long you have to repay your consolidated student loans:

Remember, you may always pay off your consolidation loan early. There are no prepayment penalties.
 

What are my repayment options?

We have repayment options to fit the needs of each individual. Choose which is best for you from the programs explained below. You can switch your repayment option later if your financial situation changes. For further details, please contact our Educated Student Loan Counselors at 1-888-947-2356.

Do I have to extend my terms when I consolidate my student loans?

No, you can keep your payments and terms the same. 

Are deferments and forbearance allowed under a consolidation loan?

Yes. Our Educated Student Loan Counselors can provide you with answers and a copy of the Federal Consolidation Loan Deferment and Forbearance Benefits page which gives you a complete description of deferment and forbearance eligibility rules.

Are deferments and forbearance allowed under a consolidation loan?How can applying during a grace or deferment period for my Stafford student loan lower my interest rate?

You are eligible for a further reduction of your consolidation loan interest rate of .6% when you apply for student loan consolidation during a grace or deferment period.   During these periods, the Stafford loan interest rate is .6% lower than during active repayment. 

Click here to apply online or call our Educated Student Loan Counselors at 1-888-947-2356.

Do I get a grace period on my consolidation loan?

Unfortunately, no. You must begin repayment within 30 days once your consolidation loan has been funded.

Will my subsidy on the Stafford student loans I'm consolidating be affected?

If you're eligible for interest subsidies on your underlying Stafford student loans you'll continue to receive subsidy benefits on the part of the consolidation loan that repays the original subsidized Stafford student loans.

What if I have defaulted on my current student loan(s) prior to consolidating?

Defaulting on a student loan will not will not be held against you.   But, you must make three consecutive monthly payments to your guarantor prior to applying for loan consolidation.

I have student loans and I have bad credit. Can I still consolidate my student loans?

Yes.   You can still consolidate your student loans even if you have bad credit.   There are no credit checks and no co-signers required for student loan consolidation.

How long will it take for you to get my student loans consolidated?

The process involves getting payoff information from your lenders and reviewing your application for completeness.   If everything is in order, we then disburse your new consolidation loan.   The entire process can take as few as 30 days or as long as four months, depending on the circumstances.   You can call our Educated Student Loan Counselors at any point throughout the procedure to learn the status of your consolidated loan.

Do I still have to make payments on my student loans while my consolidated application is being processed?

Yes!   You must continue to make regular monthly payments on your student loans because if they become delinquent or go into default, your consolidation loan will be delayed.

How will I know the amount of my new payments?

Student Aid Center will send you a payment book containing all the information you need - including payment coupons or information about our rate-lowering direct debit program - when your student loans are consolidated.

If I'm still in school can I consolidate my student loans?

You may still consolidate your student loans as long as the loans you wish to consolidate are eligible loans.    If you are in graduate school, you can consolidate your undergraduate school loans. If you're in a post-graduate program, such as medical school or law school, you can consolidate your undergraduate and graduate school loans.   Ask one of our Educated Student Loan Counselors how you can consolidate both undergraduate and graduate loans into one payment.   Consolidation also allows you to lock in a low interest rate, cut your payments by more than half and let you make a single payment for all your eligible student loans.  

If I've borrowed PLUS loans for my child's education can I consolidate them?

Yes you can.   And, you can lock in a great rate on your PLUS loans, even if your child has not yet completed school. If you are borrowing for the current academic year (or have borrowed since July 1, 1998) your variable PLUS interest rate is 6.10% with a cap of 9%. Consolidation will let you lock in a weighted rate of 6.125% on your PLUS loans for life.   And, with Student Aid Center's consolidation program, on time payments and automatic payments means further rate reductions to as low as 5.125%.    If you need to borrow PLUS funds again, you will be eligible to reconsolidate your consolidation loan with your new PLUS loans.

What is a lender code, and does Student Aid Center have one?

A Lender Code is a 6-digit identification number assigned by the U.S. Department of Education to lenders that participate in Title IV higher education loan programs.   Financial aid offices must have the lender code in order to process a Stafford or PLUS Loan.   Student Aid Center's lender code is XXXXXX.

How do I apply?

Student Aid Center makes it easy for you to apply.   To apply:

A. Complete the Student Aid Center's Secure Online Application

B. Call an Educated Student Loan Counselor   1-888-947-2356 and we will guide you through the application over the phone, discuss options and answer any questions you may have. 

C. Simply click on Apply Now to download an application.   Complete the application and mail it or fax it to us.  

The application only takes about 15 minutes to complete (if you have all your paperwork on the loans you wish to consolidate).