Frequently Asked Questions about School Loan Consolidation
Here are the most commonly asked questions about school loan consolidation.
What is school loan consolidation?
School loan consolidation is a program whereby you take out a new loan, usually with a lower interest rate, to pay off your existing student loans. When you use school loan consolidation, you also have the option of extending your repayment term to lower your monthly payments even more. In addition to reducing your payment burden, school loan consolidation can also make payments more convenient, as you pay one creditor once a month. Learn more on our consolidation facts page.
How do I apply for school loan consolidation?
You can apply for free for school loan consolidation by filling out our short, online application. We don't require you to know the details of your student loan portfolio to complete the application. You should be able to complete it in just a few minutes. Once we receive your application, we will contact you via telephone within 15 minutes, if you applied during our normal business hours of 8 AM-10 PM EST. One of our school loan consolidation representatives will then answer any questions you have and walk you through the rest of the process. The application is completely free with no obligation.
Am I eligible for school loan consolidation?
In general, you are eligible for school loan consolidation if:
- You have graduated or are no longer enrolled in school more than half time
- You have not previously consolidated your loans
- Your loans are in a repayment or grace period
Additional eligibility requirements will vary by which type of school loan consolidation you choose. For example, you would only be able to consolidate federal student loans in a federal school loan consolidation program. Similarly, private school loan consolidation would require a credit check and/or a co-signer.
Why should I consider school loan consolidation?
Many college graduates are shocked at the tremendous burden student loan repayment places on their budgets. If you are like many graduates, you might be struggling to make the payments each month on your student loans. To ease this burden, school loan consolidation can reduce your monthly payments by lowering your interest rates and/or extending your repayment term. Alternatively, even if you are not having any trouble making your payments, school loan consolidation might make sense for you simply for the convenience of having one monthly payment. Instead of paying multiple creditors on different days of the month, you have one, easy payment each month to one creditor. You can even choose to have the payment automatically withdrawn from your checking or savings account to maximize convenience and enjoy an additional reduction in your interest rate as well!