Q:
Can my spouse and I consolidate all of our loans into one loan?
A:
No, married couples may not consolidate their eligible loans jointly.
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Q:
Can I consolidate my loans while in school?
A:
No, you must be in the grace period or have entered repayment on each loan being
consolidated.
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Q:
Can I consolidate defaulted student loans?
A:
Yes, if a lender accepts defaulted loans for consolidation and if satisfactory repayment
arrangements are made with the holder of each defaulted loan (3 or more consecutive
on-time full monthly payments) or an income sensitive repayment schedule is set up
with the Consolidator.
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Q:
If I have already applied for consolidation with one lender, can I apply with another
lender that offers a more appealing loan?
A:
No, a borrower must certify that only one application for Consolidation is pending.
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Q:
If all my FFELP loans are held by one lender, can I request consolidation from another
lender?
A:
Yes, as long as they are an authorized Lender for FFELP Consolidation Loans.
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Q:
Can I consolidate my private loans with my other student loans?
A:
No, only the following loans are eligible for consolidation:
- FFELP loans (Stafford - sub and unsubsidized, PLUS, Grad Plus, SLS, and Consolidation)
- FDLP - Federal Direct Loans (Stafford, PLUS, Grad Plus, SLS, and Consolidation)
- FISL loans - Federally Insured Student Loans
- Federal Perkins loans
- HPSL - Health Professions Student Loans (including LDS - Loans for Disadvantaged
Students)
- NSL - Nursing Student Loans
- HEAL - Health Education Assistance Loans*
*Conduent does not consolidate HEAL loans.
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Q:
Can I add other student loans to my Consolidation loan? How?
A:
Yes, if the loans are eligible and the request is made within 180 days. Contact Conduent
Consolidations at 1-800- 283-6221 and ask for a "Request to Add Loans". You can also download the request to Add Loan Application at www.conduenteducation.com. Click on Loan Consolidation and select Consolidation downloads.
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Q:
Do I pay a guarantee or origination fee for consolidating my loans?
A:
No, lenders can not charge a guarantee or origination fee for consolidation.
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Q:
What is an LVC?
A:
An LVC is a Loan Verification Certificate, which is a document that must be completed
by the holder(s) of each loan to be consolidated. It is used to obtain information
on the underlying loans and to quote a pay-off.
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Q:
How is the interest rate calculated?
A:
It is a weighted average of the interest rates on the loans being consolidated, rounded
up to the nearest 1/8%, not to exceed 8.25%. The outstanding balance is multiplied
by the current interest rate, the subtotals are added, then divided by the sum of
the outstanding balances and rounded up to the nearest 1/8 %. Example provided below:
|
Outstanding Balances |
Interest Rate |
|
$3500 |
7% |
|
$3200 |
5% |
|
$5500 |
9% |
|
|
|
|
$3500 x .07 = $245 |
|
|
$3200 x .05 = $160 |
|
|
$5500 x .09 = $495 |
|
|
$12200 |
|
|
|
|
|
$245 + $160 + $495 = $900 |
|
|
$900 / $ 12200 = .07377 or 7.377% |
|
|
|
|
|
7.377 % rounded to the nearest 1/8 = 7.5% |
|
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Q:
What will be my outstanding balance on my Consolidation loan?
A:
It will be the total of all outstanding principal balances, unpaid accrued interest,
late charges and collection fees (if applicable), for the loans included in the consolidation
request.
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Q:
When does interest begin accruing on my Consolidation loan?
A:
Interest begins accruing from the date the funds transfer from the consolidating lender
to the holder of the underlying loans.
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Q:
What happens if the consolidating lender does not pay off all of my student loans
or a portion of a loan?
A:
If an entire loan was not included in the consolidation and Conduent is servicing the
consolidation, you should contact the Conduent Consolidation Department at 1-800-283-6221
to request an add-on. If a portion of a loan was not paid off during the consolidation
process and Conduent services the underlying loans, contact our Borrower Services Dept
at 1-800 -835-4611. If a request has not already been made, an Underpaid Letter will
be submitted to the Consolidator. If a portion of a loan was not paid off and Conduent
does not service the underlying loans, you should contact the servicer and request
that they send an Underpaid Letter.
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Q:
When is my first payment due?
A:
A first payment due date will be established within 45-60 days after the date on which
the last disbursement discharging the underlying loans is made.
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Q:
What is my new repayment term?
A:
The following table outlines the repayment terms according to the outstanding balances
on all education loans (regardless of whether they are included in your Consolidation
loan):
|
Sum of all Education Loans |
Maximum Repayment Term |
|
Less than $7500 |
10 years |
|
$7500 - $9999 |
12 years |
|
$10,000 - $19,999 |
15 years |
|
$20,000 - $39,999 |
20 years |
|
$40,000 - $59,999 |
25 years |
|
$60,000 or more |
30 years |
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Q:
What types of repayment plans does Conduent offer for Consolidation loans?
A:
Conduent offers the following repayment plans:
- Standard - a fixed monthly payment
- Graduated repayment - increased payments over the term of the loan
- Income-sensitive - payments are adjusted annually based on your expected income
- Extended repayment - available to borrowers with loans that total more than $30,000, will extend repayment term from 20 to 25 years
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Q:
Will my Consolidation loan be eligible for deferments or forbearances?
A:
Yes, if the consolidation loan is disbursed on or after 7/1/93, the consolidation
loan may qualify for the following deferment/forbearance types:
- Education-related (fellowship or rehabilitation training)
- Unemployment
- Economic Hardship
- Forbearance (all types)
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Q:
Are there any penalties for prepayment or paying the loan off early?
A:
No, there are no penalties for prepayment or paying the loan in full prior to the
final due date.
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Q:
Can I consolidate a previously consolidated loan?
A:
Effective 7/1/06, reconsolidating an existing consolidation loan is not allowed. You can consolidate an existing consolidation loan if you have another FFELP loan.
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