The following FAQ section will help you with some answers to your Student Loan Consolidation questions.

1. What is Consolidation?

A Federal Consolidation loan is a repayment option for student loan borrowers. It is designed to make education loan repayment easier by combining existing eligible federal education loans into one new loan with a fixed interest rate and a lower monthly payment. Consolidation is a bit of a misnomer because a single loan can be "consolidated" to take advantage of better loan terms.

2. Why should I consolidate my student loans with Student Loan Consolidation?

Because you want to lock in your rate, lower your payment, and take advantage of Student Loan Consolidation discounts. Student Loan Consolidation offers a complete and instant online student loan experience. You simply enter your information into our easy-to-use online form, electronically sign your promissory note and we immediately begin processing your loan.
In addition to our incredibly fast and simple process, we also offer some of the most competitive student loan interest rates and borrower benefits available. If you want to secure a low rate for the life of your student loan and reduce your monthly payments to the lowest possible payment then Student Loan Consolidation is your only choice.

3. Are there other costs associated with consolidation?

There are no fees of any kind associated with a Student Loan Consolidation consolidation loan. There are no closing costs, prepayment penalties, or credit checks.

4. When can I consolidate?

You can apply to consolidate anytime after you have graduated or left school. You may also be able to consolidate if you are in school less than half time or if your loans have previously been in repayment.

5. What loans are eligible to consolidate in the federal student loan consolidation program?

Stafford Loans, Plus Loans, Consolidation Loans, Perkins Loans, Heal Loans, NSL Loans, HPSL Loans and Direct Loans.

6. Can I consolidate my loans with Graduate Loan Associates if I am in default on my student loans?

Yes and no. You can only consolidate the loans that are not in default. You must first cure the defaulted loan in order to put it into the consolidation.

7. What are the advantages of consolidating my student loans?

The advantages of consolidating consist of:

9. What will my interest rate be?

The rate is comprised of a weighted average of your current rates rounded up to the nearest 1/8th of a percentage point, fixed. So if all of your rates were 3.5% your weighted average would be 3.5%.

10. What are interest rate discounts or borrower discounts?

Often called "incentives" or "borrower benefits", these discounts are earned reductions in your interest rate. At Student Loan Consolidation, we provide a rate decrease of .50% if you set up auto-debit payments. We also offer a rate decrease of 1.5% if you make your initial 24 continuous monthly payments on-time and maintain payments to avoid being delinquent.

11. I have consolidated my loans in the past can I consolidate again?

The term "consolidate" means to bring 2 or more items and put them together so the answer is no unless you have more eligible Federal Education Loans to put together with it. However, you can refinance your loan with a lender who offers Borrower Benefits which can reduce your rate for making electronic and on-time payments.

12. When can I expect my first bill for my consolidation?

The payments are usually due within 30-60 days of the funding date.

13. How long does it take once I have submitted my application to consolidate my student loans?

Depending on how fast your lenders get back to us with the payoff balance it could take anywhere from 4 weeks to 10 weeks. Average time is 6-8 weeks

14. Do I retain federal benefits if I consolidate my student loans with Graduate Loan Associates?

You retain benefits such as Deferment, Forbearance, interest tax deductibility, and the Death and Disability Benefit. Also, if you have subsidized and unsubsidized loans they will also stay split when you consolidate your student loans in case you want to go back to school or need to put them into Deferment.

15. Can I change my Payment Plan?

Yes, during the application process or after the consolidation is complete, you can contact us to request a different payment plan. There are limitations on making changes more than once a year or after the loan has been in repayment for more than one year.

16. How long will I have to repay?

Your repayment terms are determined by your total indebtedness, including all outstanding education loans. Repayment terms range from 10 to 30 years.

17. What happens if I can't make my payment on my consolidation loan?

Call your counselor and request to put the loans into a Deferment or Forbearance status until you are in a position to start paying on them again.

18. Are there late fees on my consolidation loan if I am late on a payment?

Yes. The typical late fee for a student loan consolidation is 4-10% of your monthly payment. So if your payment was $200 dollars and the fee was 5% that would cost you $10.

19. Should I consolidate my loans while I am still in my grace period?

If you do you will lock in at lower rate. The grace period rate for Stafford loans is .6% lower than it is in repayment.