How To Apply Federal Consolidation Loan

Applying for a Federal Consolidation Loan is a multi-step process that might take four to six weeks to complete. Until the process is complete, you must continue making payments on the loans you wish to consolidate. Generally, the loan application process works as follows: You complete a Federal Consolidation Loan Application and Promissory Note and submit it to the consolidating lender. The consolidating lender sends a Lender Verification Certificate (LVC) to your loan holder(s) as listed in your application. The loan holder completes the form and returns it to the consolidating lender. Once the consolidating lender has all of your LVCs, they will send you a repayment option letter. This letter includes the estimated principal balance, interest rate, and repayment period of your Consolidation Loan. NOTE: You can cancel all or a portion of your Consolidation Loan at this time. Your consolidating lender will send payoff funds to your current student loan holder(s). You will receive a repayment schedule and disclosure statement. This document contains important information such as the consolidating balance and summary of your repayment terms, including your first payment due date. Shortly thereafter, you should receive a monthly billing statement for the Consolidation Loan. You have 180 days once the consolidation is completed to add any eligible loans you may have missed into the consolidation loan. This might change your repayment term and interest rate.