Loan Consolidation

Questions To Ask Your Servicer

  • How long will it take to complete the consolidation paperwork?
  • What rate do I lock into the weighted average formula?
  • If I apply in July/August can I request a start date in November?
  • If I apply in early October, will it be based on the grace period rate or the repayment rate if it is not completed until Nov/Dec?
  • Can I request an amortization schedule prior to “applying”?
  • Can I amortize the loan for fewer years than you would normally be allowed?
  • Can I take a 30 year and setup a 20 year payoff?
  • If I take a shorter payout, can I switch back to the full time if cash problems develop?
  • Based on when I apply, when is my first payment due?
  • Can I pay via auto debit and how long will it take to setup and/or change?
  • What repayment incentives are offered?
  • Are there penalties?
  • How do my deferment/forbearance options change from what I would have if I did not consolidate?