Frequently Asked Questions (FAQ) on Student Loan Consolidation.
How is the interest rate determined?
Consolidation rates are set by the federal government, which are determined
by taking a weighted average of the interest rates on
all loans to be consolidated
and rounding up to the nearest 1/8 of 1% or 8.25%, whichever is less. From there,
Student Loan Consolidation Center can offer you some exciting borrower benefit rate
reductions. Please call one of our counselors today to find out what we can do for
you!
Is interest tax deductible?
Most people can deduct interest paid on Federal Consolidation Loan.
Consult your tax advisor for more information.
How do I apply?
Student Loan Service Center makes it simple. Just fill out our easy
online
application form or download the form (PDF) and either it mail or fax it
in. Loan counselors at Student Loan Service Center will be happy to help you out
and can be reached at 1-866-231-FUND (3863).
Is there a downside to consolidation?
Although consolidation can truly simplify and help many students manage
their monthly payments,
there are some cases when consolidation may not be right for you.
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If you are close to paying off your student loans, it may not make sense to consolidate
or extend your payments. |
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Remember that by extending the years of repayment for your loans, you may be increasing
the total amount you have to pay in interest. Be sure to discuss your options with
a loan counselor before you select a payment plan. |
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Not all programs offer the same borrower benefits; make sure you choose a reliable
program that offers good borrower benefits and reliable service. |
Can my parents consolidate their Federal PLUS loans with my student loans?
All loans must be under the same borrower's Social Security Number, thus
parents cannot consolidate their PLUS Loans with their children's Stafford Loans,
or vice-versa.
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