FAQs

Here are the answers to the most commonly asked questions about new student loan debt consolidation.

Why should I consider new student loan debt consolidation?

Simply put, new student loan debt consolidation can save you money, regardless of your student loan debt situation.  Here are some of the best reasons to consolidate:

• Have more leeway in your monthly budget by reducing student loan payments by an average of 10%-60%
• Make monthly payments hassle-free with one payment to one creditor
• Enjoy a fixed rate on federal consolidation loans for the life of the loan
• Use your savings from new student loan debt consolidation to pay off credit cards
• New student loan debt consolidation will help your credit score and debt-to-income ratio
• Reduce your interest rate even further with our borrower benefit options

If I extend my repayment term to 30 years, won’t I end up paying more in the long-run?

Using new student loan debt consolidation to extend your repayment term will increase your total interest expenses.  This is because you are making smaller payments stretched over a longer period of time.  On the other hand, we do not charge prepayment penalties, so you could pay the loan off more quickly as soon as you’re financially able to do so.  In the meantime, smaller monthly payments will enable you to take care of your other bills and build financial stability. Please visit our student loan debt page if you would like more information.

Does my credit matter?

The role your credit will play will vary by the type of new student loan debt consolidation service you choose.  For federal consolidation loans, credit is not a factor.  No credit check or co-signer is required to take out a federal consolidation loan.  Private new student loan debt consolidation, on the other hand, is credit-based.  This means you will need a co-signer if your income or credit doesn’t qualify you for a loan. 

Will I be able to deduct the interest on my consolidation loan?

Most people are able to deduct the interest from their federal consolidation loan.  To find out for sure, consult your accountant or tax advisor. 

What if I have private student loans?

We offer both private and federal new student loan debt consolidation.  With private consolidation loans, you will need to pass a credit check and might also be charged origination fees, depending on your credit.