How does Federal Consolidation work?
The Federal Consolidation program takes all of your eligible Federal Student Loans and combines them into one loan with a fixed interest rate and a lower monthly payment. Once you send your signed and dated application back to our processing center, we will begin processing your loans. We will send loan verification certificates to your current loan holders to verify the current interest rate, status, and payoff amount on your loan. Once the loan holder sends back this information to our processing center and there are no discrepancies, your loan will be completed. Your new lender will send the payoff amount to your current loan holders and those loans will be “paid off” and your new consolidation loan will begin. This entire process takes anywhere from 3 to 5 weeks. Continue making payments on your current loans until you receive your information packet in the mail.
