Student Loan Consolidation Walkthrough

First, you will need to choose a lender. There are many to choose from, but, in general, it's smart to stick to a well-established financial institution. These lenders will have a variety of payment plans and discounts, and they will be less likely to sell your loan to another lender in the future. There should never be a charge or fee for anyone applying for student loan debt consolidation. As well, a lender should not need to check your credit because Federal student loans are guaranteed by the U.S. government.

Next, you will need to fill out an application. Remember to gather all information on existing loans prior to filling out your application. Also, you will need to supply personal references. Before you sign your name on the application, make sure that you clearly understand the terms of the new loan. Ask about incentives and discounts that can help reduce your payment. Many lenders have downloadable forms and online calculators to determine the amount you will pay with your new loan.

Once you have submitted your completed application, the lender will send each of your loan holders a Loan Verification Certificate (LVC) to verify the amount owed on each of your Federal student loans. You can expect that your existing lenders will take up to 30 days to return the LVCs. Once these certificates are processed, the interest rate will be calculated and a disclosure statement is prepared. Checks will be issued to your lenders to pay off your loans, and your new consolidated loan will be issued.

This entire process can take between 30 to 180 days to complete, and if information is missing from your application, it can take even longer. Most lenders have customer service representatives who will gladly keep you updated on the status of your loan application. Remember to continue to pay on your existing loans while your application is being processed. You will be financially responsible for these loans until the new lender has paid off them in full.

Finally, keep in mind that interest rates on student loans are adjusted annually every July 1st. This year, rates will be increasing 2.1 percent. You can be assured of the lower rate if you submit a completed application early. Don't wait until the end of June to start the process. While it will take time to process your student loan consolidation application, with a little advanced preparation and research you can complete your application with minimal effort. And, once your new loan is processed, you will most certainly be thrilled with your lower payments.
 
 
About the Author
Mike O'Brien offers advice and information about federal student loan consolidation. This is a quality web site with a choice of federal student loan consolidation information at your fingertips!

Article Source: http://www.simplysearch4it.com/article/25293.html
 

If you wish to add the above article to your website or newsletters then please include the "Article Source: http://www.simplysearch4it.com/article/25293.html" as shown above and make it hyperlinked.

Some other articles by Mike O'Brien

Making an offer on an Irish Property More often than not, First Time Buyer Ireland couples/singles find it very difficult to obtain suitable mortgage offers. However, after you pass the mortgage loan toil, the next issue ... Ugly people – more than a joke We can think long and hard about what makes us humans. The truth of the matter is that we are not perfect and we all have our own defects. Ugliness ... Ugly men and ugly women – ugly on the inside/outside? The Internet is one of the most amazing things ever invented. It can offer us all the info we need and much more. The online world ... Do ugly women feel the same as ugly men? There have been a lot of research studies made about ugly people. When I say ugly people I don't just mean ugly men, but also ugly women, even though they are trying very hard ... Ugly women and men facing the issue of beauty From ugliness to beauty – nothing can be more representative than examples. If you look it up on the Internet, you'll see just how difficult it is for people to reach ... Ugly people and charisma We are sure that the idea of ugly women who nonetheless possess unbelievable, charming and persuasive powers is not new to your mind. And this doesn't go true for women ...