It’s true, consolidating your student loans is available at no cost. However, the consolidation application process is not as easy as loan servicers make it seem. If it were easier, more people would be enrolled in forgiveness and consolidation programs, and companies like this one wouldn’t exist.
In some situations, such as default, other forms are needed in order to apply for consolidation. If the needed forms aren’t sent in at the same time, you will be denied immediately and you won’t be allowed to apply again for six months.
How we help:
Our fee ensures the client that their paperwork is being processed 100% correctly and that they are being offered the best available program. It’s the same principle as filing your taxes. You could file your own taxes for free, but it’s in your interest to pay an expert (accountant) to do it for you. Your accountant knows the ins and outs of the system and how to best apply deductions so you get the biggest refund.
This is exactly what we do. We ensure the best repayment program for you so your monthly payments are affordable, and the process is as smooth as possible.
These programs are often referred to as “Obama student loan forgiveness.” Is that the actual name?
No, the actual programs were made available through the William D. Ford Direct Loan Program in 2007, before Obama took office. Obama's administration just signed an executive order that added the Revised Pay As You Earn.
A FSA ID consists of a username (or verified e-mail address) and password which gives you access to Federal Student Aid's online system, as well as serve as your legal signature when completing electronic documents. It is formally known as the 4-digit pin number.
Consolidating your student loans could be beneficial for a couple different reasons:
- If you have multiple loan servicers and make more than one monthly payment, consolidating your student loans could give you the opportunity to have a singular payment made out to one company.
- If your monthly payments are extremely high a consolidation could not give you a lower monthly payment, but it could also extend the length of your program.
- A consolidation can also open more opportunities for different repayment plans offered by the Department of Education.
For example: if you only have FFEL loans then you are could only eligible for an IBR program (15% of your income), which can give you a higher payment than the REPAYE program (10%) could.
You must have more than one loan. There is no credit check, no minimum balance or maximum balance needed to qualify. Your loans must be in a qualifying status such as grace period, repayment, forbearance, deferment or default.
Loans in loan origination (still enrolled in school), active wage garnishment, or active bankruptcy status cannot be consolidated until they enter the proper status.
Consolidating your loans could give you a weighted average interest rate of your existing loans.
Most federal student loans, including the following, are eligible for consolidation:
- Subsidized Federal Stafford Loans
- Unsubsidized Federal Stafford Loans
- PLUS loans from the Federal Family Education Loan (FFEL) Program
- Supplemental Loans for Students
- Federal Perkins Loans, cannot be consolidated by themselves, there must be another FFEL or direct loan.
- Nursing Student Loans
- Nurse Faculty Loans
- Health Education Assistance Loans
- Health Professions Student Loans
- Loans for Disadvantaged Students
- Direct Subsidized Loans
- Direct Unsubsidized Loans
- Direct PLUS Loans
- FFEL Consolidation Loans and Direct Consolidation Loans (only under certain conditions)
There are several repayment plans in the Federal Loan Forgiveness Programs:
- Standard: Fixed amount that is based solely off your loan amount and interest rate, generally 120-360 months.
- Graduated: Payments start off lower but gradually increase by 4.25% every 2 years, generally 120-360 months.
- Income Based Repayment: 15% of your discretionary income, generally 300 months, must have financial hardship.
- Income Contingent Repayment: 20% of your discretionary income, generally 300 months
- Pay As You Earn: 10% of your discretionary income, generally 240 months, must have loan disbursements on or after Oct. 1, 2007 and Oct. 1, 2011.
- Revised Pay As You Earn: 10% of your discretionary income, generally 240 months, no financial hardship needed.
*Parent PLUS loans only qualify for ICR*
Yes, at any time you can choose to switch repayment plans. In some cases you may have to make 3 consecutive monthly payments under your current plan, or a $5 reduced payment forbearance before you can change your plan.
These student loan forgiveness programs were made available through the William D Ford Direct Loan program in 2007. There have been recent modifications to the student loan forgiveness programs but that is where the plans originated from.
Public Service is a program that can be available to all local, state and federal government employees working full time. PSLF could also be available to individuals employed by nonprofit organizations, or private not-for-profit organizations. PSLF could lower the term on your Income Driven Repayment plan from 240 months or 300 months, to only 120 months (10 years).
If a Client is not approved for a Federal Student Loan Consolidation, or a repayment plan using current lenders, through the Department of Education after reasonable efforts by the parties, then Federated Student Loan Advisors will reimburse the Service Fee Payment (payment made to Federated Student Loan Advisors in Section 4, above).
Within 24 hours of an executed signed contract, the CLIENT may cancel this contract with or without reason. Payments made within 24 hours can be refunded to said client, at their written request, if the cancellation request is submitted within the 24 cancellation period. After 24 hours has passed from the executed contract date there will be NO refunds. If Client contacts the DOE or service provider and tampers with work of FSLA then client will be canceled without refund within the 24 hour cancellation period. If Client cancels after the 24 hour period has expired they will still be responsible for paying the remainder balance of the processing fee.