| If you are a current or former student with school | | | | the lender will send each of your loan holders a Loan |
| loans, you have probably been bombarded with | | | | Verification Certificate (LVC) to verify the amount |
| mailed and online solicitations to consolidate your debt. | | | | owed on each of your Federal student loans. You can |
| The loan application process can seem overwhelming, | | | | expect that your existing lenders will take up to 30 |
| particularly if you have more than a couple of loans | | | | days to return the LVCs. Once these certificates are |
| issued from a number of lenders. However, it is | | | | processed, the interest rate will be calculated and a |
| generally simple and straightforward if you are | | | | disclosure statement is prepared. Checks will be |
| prepared. Here is a brief overview of what you can | | | | issued to your lenders to pay off your loans, and |
| expect when you decide to consolidate your student | | | | your new consolidated loan will be issued. |
| loans. | | | | This entire process can take between 30 to 180 |
| First, you will need to choose a lender. There are | | | | days to complete, and if information is missing from |
| many to choose from, but, in general, it's smart to | | | | your application, it can take even longer. Most lenders |
| stick to a well-established financial institution. These | | | | have customer service representatives who will gladly |
| lenders will have a variety of payment plans and | | | | keep you updated on the status of your loan |
| discounts, and they will be less likely to sell your loan | | | | application. Remember to continue to pay on your |
| to another lender in the future. There should never | | | | existing loans while your application is being |
| be a charge or fee for consolidating student loans. As | | | | processed. You will be financially responsible for these |
| well, a lender should not need to check your credit | | | | loans until the new lender has paid off them in full. |
| because Federal student loans are guaranteed by the | | | | Finally, keep in mind that interest rates on student |
| U.S. government. | | | | loans are adjusted annually every July 1st. This year, |
| Next, you will need to fill out an application. | | | | rates will be increasing 2.1 percent. You can be |
| Remember to gather all information on existing loans | | | | assured of the lower rate if you submit a completed |
| prior to filling out your application. Also, you will need | | | | application early. Don't wait until the end of June to |
| to supply personal references. Before you sign your | | | | start the process. |
| name on the application, make sure that you clearly | | | | While consolidating student loans can be a time |
| understand the terms of the new loan. Ask about | | | | consuming task, with a little advanced preparation |
| incentives and discounts that can help reduce your | | | | and research you can complete your application with |
| payment. Many lenders have downloadable forms and | | | | minimal effort. And, once your new loan is processed, |
| online calculators to determine the amount you will | | | | you will most certainly be thrilled with your lower |
| pay with your new loan. | | | | payments. |
| Once you have submitted your completed application, | | | | |