Frequently Asked Questions



Helping you navigate the confusion of student loan repayment programs.



People who are considering Student Loan assistance have many options and frequently need help to determine their best course(s) of action. They also need resources and services they can count on. People interested in seeking assistance with their student loans need to research the myriad of government-approved programs and pay plans that are designed to provide financial assistance to those struggling with their current student loan debts and payments — but it can be a daunting task.

Amerian Student Loan Advocates has put together a free brochure that is available by calling (844) 499-LOAN. You can use it as your guide to provide you with all the information you need to obtain the help you seek. You can also speak directly to one of our Certified Enrollment Advisers to go over your options and payment plans at no cost or obligation. Having highly trained help for your Student Loan needs is essential. There are many Student Loan Programs available to you, and these can change without notice. American Student Loan Advocates is here to help you get the best assistance possible with your Student Loan problems.

FAQ



Are your current monthly payments unmanageable?

If you have trouble meeting your monthly payments, have exhausted your deferment and forbearance options, and/or want to avoid default, a Direct Consolidation Loan may help you.

When can I consolidate my loans?

Generally, you are eligible to consolidate after you graduate, leave school or drop below half-time enrollment.

Are too many monthly payments driving you crazy?

If you send payments to more than one lender every month, and want the convenience of a single monthly payment, consolidation may be right for you. With a Direct Consolidation Loan, you will have a single government lender and a single monthly payment.

What are the requirements to consolidate a loan?

You must have at least one Direct Loan or FFEL Program loan that is in a grace period or in repayment. If you want to consolidate a defaulted loan, the Student Loan Education Center can help you make satisfactory repayment arrangements on the loan with your current loan servicer before you consolidate, or you must agree to repay your new Direct Consolidation Loan under the Income-Contingent Repayment Plan or the Income-Based Repayment Plan. The Student Loan Education Center can qualify you for the correct program and assure your approval through the Department of Education.

Do you have high variable interest rates on your loans?

If you have variable interest rates on your Federal education loans, you may want to consolidate. The interest rate for a Direct Consolidation Loan is fixed for the life of the Direct Consolidation Loan. The rate is based on the weighted average interest rate of the loans being consolidated, rounded to the next nearest higher one-eighth of one percent and can not exceed 8.25 percent.

What is the interest rate on a consolidation loan?

A Direct Consolidation Loan has a fixed interest rate for the life of the loan. The fixed rate is based on the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of 1%. However, the rate will not exceed 8.25%.

One lender and one monthly payment

With only one lender and one monthly payment due for student loans, it is easier than ever for borrowers to manage their debt. Borrowers have only one government lender, for all loans included in a Direct Consolidation Loan.

How do I apply for a Direct Consolidation Loan?

Call us now for your FREE consultation! One of our Student Loan Advisors will go over your existing loans and based on your situation, qualify you for the best consolidation program that fits your needs. Call a friendly and professional Enrollment Adviser at (844) 499-LOAN or complete the Contact Us form on this website and an Enrollment Adviser will follow up with you shortly.

Flexible repayment options

Borrowers can choose from multiple repayment plans with various term selections to repay their consolidation loan(s), including an Income Contingent Repayment and an Income-Based Repayment Plan. We can go over these with you to ensure they are simple and understandable. These plans are designed to be flexible to meet the different and changing needs of borrowers. With a consolidation loan, borrowers can switch repayment plans at anytime.

When do I begin repayment?

Repayment of a Direct Consolidation Loan can begin 60 days after the loan is disbursed, or sooner. We will let you know when the first payment is due. The repayment term ranges from 10 to 30 years, depending on the amount of your consolidation loan, your other education loan debt, and the repayment plan you select.

No minimum or maximum loan amounts or fees

There is no minimum amount required to qualify for a Direct Consolidation Loan! In addition, consolidation has affordable cost!

Are there different repayment plans?

There are several repayment plans that are designed to meet the different needs of individual borrowers. You will receive more detailed information on your repayment options from your loan servicer when you consolidate your loan.

Varied deferment options

Borrowers with consolidation loans may qualify for renewed deferment benefits. If borrowers have exhausted the deferment options on their current Federal education loans, a consolidation loan may renew those deferment options

What is the Public Service Loan Forgiveness Program?

In 2007, Congress created the Public Service Loan Forgiveness Program to encourage individuals to enter and continue to work full-time in public service jobs. Under this program, borrowers may qualify for COMPLETE FORGIVENESS of the remaining balance due on their eligible federal student loans after they have made 120 payments on those loans under certain repayment plans while employed full time by certain public service employers. Call today to speak to an Enrollment Adviser to see if you possibly qualify.

Reduced monthly payments

A consolidation loan may ease the strain on a borrower's budget by lowering the borrower's overall monthly payment. The minimum monthly payment on a consolidation loan may be lower than the combined payments charged on a borrower's Federal education loans.

Retention of subsidy benefits

There are two (2) possible portions to a consolidation loan: Subsidized and Unsubsidized. Borrowers retain their subsidy benefits on loans that are consolidated into the subsidized portion of a consolidation loan.