Consolidating college loans sallie mae
You can opt out, but you’ll have to submit a copy of your most recent federal tax return directly to your loan servicer after you finish the consolidation application.
The remainder of the application involves filling in basic personal information and providing names of two references who have known you for at least three years.
When you consolidate, a lending institution pays off your existing balances and replaces them with a new, consolidated loan.
The key terms for federal consolidation loans do not vary by lender: no application or origination fees are allowed and there are no prepayment penalties.
If your loans are already with one of those servicers, you can stay or choose a new one.
Your repayment term will generally start within 60 days of when your consolidation loan is first disbursed and will be based on your total federal student loan balance, among other factors; click on the link below for more details.
Federal law sets the period of time for paying back the loans and sets a ceiling on the interest rate.
Private consolidation lenders, on the other hand, are not subject to those terms and may include variable rates and any number of fees.
As with the Stafford Loans, there are both Direct and FFEL consolidation programs.
To a college grad swamped with multiple student loans that have come due, loan consolidation is an enticing option.
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You have to complete the application in a single session, so do your research before you start.