Student Loan Consolidation Program FAQ

The following Student Loan Consolidation FAQ section will help you with some answers to your Private Student Loan Consolidation questions. Please contact us through our website for any additional answers to your questions or call 1-800-309-0825 to speak to one of our experienced loan consultants.

Federal Loan Consolidation FAQ

• What loans are eligible to consolidate in the federal student loan consolidation program?
• Do I retain federal benefits if I consolidate my student loans with Graduate Loan Associates?
• Should I consolidate my loans while I am still in my grace period?
• What are the advantages and disadvantages of consolidating my student loans?
• What will my interest rate be?
• Are there any fees to consolidate my student loans?
• How long does it take once I have submitted my application to consolidate my student loans?
• Can I consolidate my loans with Graduate Loan Associates if I am in default on my student loans?
• I have consolidated my loans in the past can I consolidate again?
• Are there late fees on my consolidation loan if I am late on a payment?

Private Loan Consolidation FAQ

• Can I consolidate my Federal Student Loans together with my Private Student Loans?
• Is a co-signer required?
• How do I know if I am eligible?
• What will my interest rate be?
• Which types of loans are eligible to be consolidated in the Private Consolidation Loan?
• How long will it take for my loan to be consolidated?
• Can I consolidate my loans when I am in school and continue to receive an in-school deferment?
• How many years will I have to repay my loan?
• Do you have a minimum loan amount for the Private Consolidation Loan?
• Once I consolidate, can I refinance again in the future?
• What happens if I can't make a payment?

Federal Loan Consolidation FAQs

1. 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(all)

2. 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.

3. Should I consolidate my loans while I am still in my grace period?
If you do, you will lock in a lower rate. The grace period rate for Stafford Loans is .6% lower than it is when in repayment.

4. What are the advantages and disadvantages of consolidating my student loans?
There really are no disadvantages to consolidating your loans. The one disadvantage that we are aware of has to do with the Federal Perkins Loan. Perkins loans are typically subsidized by the Federal Government while in deferment or in-school. When you consolidate these loans they loose that subsidy.

The advantages of consolidating consist of:

• One monthly payment
• Fixed rate (this of course is advantageous if rates are low)
• Loan terms up to 30 years depending on balance

5. 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%.

6. Are there any fees to consolidate my student loans?
No. There are no fees, and no credit check

7. 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

8. 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.

9. 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.

10. Are there late fees on my consolidation loan if I am late on a payment?
Yes. You will have a 15 day grace period before your payment is considered late. 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.

Please contact us through our website for any additional questions or call 1-800-309-0825

Private Loan Consolidation FAQs

1. Can I consolidate my Federal Student Loans together with my Private Student Loans?
No, Federal Student Loans are subject to Federal terms and conditions and may not be combined with a Private Student Loan. We recommend that you take advantage of a separate Federal Consolidation loan product for these loans, so that you can keep your Government Guarantees and benefits.

2. Is a co-signer required?
No, a co-signer is not required, but applicants who do not meet the credit eligibility requirements on their own may apply with a co-signer. Our Private Consolidation Loan Program offers a co-signer release benefit. If you make 48 on-time payments we will release the co-signer from the debt obligation, provided the borrower can meet the credit requirements on their own.

3. How do I know if I am eligible?
This is a credit based loan, we can get you or your co-signer (if needed) credit pre-approved over the phone in about 10 minutes. We will then need to collect some of your loan documents to fund your loan.

4. What will my interest rate be?
Your rate will be determined by your or if needed your co-signers credit score.

5. Which types of loans are eligible to be consolidated in the Private Consolidation Loan?
Any existing private student loan is eligible for the Private Consolidation Loan. Federal student loans, home equity loans and credit cards are not eligible for consolidation. If you are unsure whether a loan may be eligible please contact us at 800-308-0825.

6. How long will it take for my loan to be consolidated?
Generally speaking, you should expect the entire private loan consolidation process to be completed in less than 30 days. This is dependent upon your ability to provide the required documentation regarding your income, expenses and underlying private student loans.

7. Can I consolidate my loans when I am in school and continue to receive an in-school deferment?
No, your Private Consolidation Loan begins repayment immediately, and is designed for students who are in repayment, or are soon to begin repayment. If you are still in school, we would advise you to wait until after graduation or when your current deferment has ended and you are ready to make payments.

8. How many years will I have to repay my loan?
Our Private Consolidation Loan has a repayment term of 25 or 30 years based on the balance of your loan. Keep in mind we have no pre-payment penalties, so you can pay off your loan as soon as you would like with no additional cost.

9. Do you have a minimum loan amount for the Private Consolidation Loan?
Yes, the minimum loan amount is $7,500.

10. Once I consolidate, can I refinance again in the future?
Yes, unlike a Federal Consolidation Loan, you can refinance as many times as you would like. We have no pre-payment penalties.

11. What happens if I can't make a payment?
You will have 1 year of Forbearance to use, when payments will not be required.