|
FREQUENTLY ASKED QUESTIONS
Why should I consolidate my federal student loans?
Combining two or more or your federal loans into one new loan will make
managing your education investment much easier, especially if you have more
than one lender or servicer. With just one contact point, repayment will be
less complicated and ensures that all of your loans are receiving the same
attention and status updates. You may also reduce your monthly payment by
extending the repayment period.
What are the eligibility requirements?
You are eligible to consolidate your student loans through the HPCC if you have
at least one federal loan (excluding a single consolidation or Perkins loan). In addition, you should
not be in default on your federal loans unless satisfactory payments have been
made to the lender/servicer of your loan. You can only consolidate those loans
that were borrowed under your own Social Security Number.
How can I find out where my loans are and the balances?
All of your outstanding federal loans and relevant information can be viewed at
a central location on the National Student Loan Data System (NSLDS) website at
www.nslds.ed.gov. If you do not have a PIN Number and want to complete
your consolidation application on-line, you can apply for one on-line at
www.pin.ed.gov
. As a service of HPCC, call us at (800) 243-7414 and we will be glad to
provide you with a completed application that lists your federal loans for you.
What is the interest rate?
The calculation for determining the interest rate is established by the U.S.
Department of Education. The interest rate formula is based on the weighted
average of the interest rates on the loans being consolidated, rounded up to
the nearest 1/8th of one percent, or 8.25%, whichever is less. After
consolidation, the interest rate is fixed for the remainder of your repayment
period.
Who will be the servicer for my consolidation loan?
Great Lakes is the contracted servicer. They will process your application and
be your repayment contact once your loan is complete.
How long is the consolidation process?
Great Lakes will contact the different lenders/holders of the loans you listed
on the application. Depending on the number of different organizations and
their response time to provide a payoff amount, it may take between four to
eight weeks to process your new loan.
Do I continue making loan payments while my consolidation application is in process?
If you are currently in repayment, payments are still expected until you are
notified that the loan has been paid off through the consolidation process.
When the consolidation process is complete, Great Lakes will send you a
disclosure statement and repayment schedule, indicating your new monthly
payment amount and due date.
What are the fees to consolidate my loans?
There are no fees. The federal regulations that govern this loan program
prohibit any cost to the borrower. In addition, there are no prepayment
penalties.
What types of loans qualify for the HPCC's Federal Consolidation Loan Program?
(Private loans are not eligible for this consolidation loan.)
Federal Subsidized and Unsubsidized Stafford Loans
Federal Graduate PLUS Loans
Federal Consolidation Loans
Federal Direct Loans
Supplemental Loans for Students (SLS)
Federal Perkins Loans (formerly NDSL)
Federally Insured Student Loans (FISL)
Health Professions Student Loans (HPSL)
Federal Parent Loans (PLUS)
Federal Nursing Student Loans (NSL)
Health Education Assistance Loans (HEAL)
What repayment options are available?
The following options are available as a repayment method for your
consolidation loan and can be changed at any time without cost or penalty.
Check out Great Lakes' consolidation calculator to compare the repayment plans
or
Call
an HPCC counselor at 800-243-7414 to help determine the repayment option that is best for you.
What is the maximum repayment period?
Depending on the total amount of your consolidation loan, the government has
set the following repayment periods:
| Sum of Loans to be Consolidated Plus Balance of Other Educational
Loan(s) |
Maximum Repayment Period |
| Less than $7,500 |
10 years |
| $7,500 or more, but less than $10,000 |
12 years |
| $10,000 or more, but less than $20,000 |
15 years |
| $20,000 or more, but less than $40,000 |
20 years* |
| $40,000 or more, but less than $60,000 |
25 years |
| $60,000 or more |
30 years |
|
