#federal loan consolidation
Frequently Asked Questions about Federal Loan Consolidation
Does it cost anything to get a consolidation referral?
No. You can use the form on this site without worry that it will cost you anything, raise the rates of any loan you may get, or affect your credit in any way.
Will loan consolidation hurt my credit?
No. Debt consolidation does not hurt your credit and may, in fact, have an immediate positive effect, as once you receive the consolidation loan, paying off your Federal student loans will show those accounts on your credit report as “Paid in full” and closed which looks good to future lenders.
Can I consolidate private loans in with my student loans?
Absolutely! You can get a consolidation of most any type of debt along with your federal loans as long as your credit is sufficiently high enough to justify a loan large enough for the consolidation.
What if I lose my job or can’t make payments?
If you lose your job or find yourself unable to make loan payments for whatever reason, you should speak witch a loan counselor in order to make suitable arrangements for lowering your payments or perhaps getting a deferment of your payments until a later time.
How long does it take to get a consolidation loan?
Loans can be issued in as little as two weeks and the actual consolidation process completed a short time thereafter. Much will depend on your level of cooperation with the lender who is seeking to make the loan.
Are private student loan consolidations exempt from bankruptcy as well?
No. If you succeed in getting your student loan consolidated into a single debt managed by a private company then it is no longer protected by the same laws that exempt student loans from bankruptcy filings. Other legal issues may still apply however, in order to protect lenders from scams.