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Why should I apply now?
What do I need to do?
How much can I lower my monthly payments?
How do I know if I'm eligible for a consolidation loan?
What is the interest rate on a federal consolidation loan?
How much does it cost to consolidate my Federal loans?
Once I have taken out a consolidation loan, can I add any new loans to it?
What if don't know who currently holds my loan?
Will you check my credit before approving me for a consolidation loan?
What are my repayment plan options, and how long do I have to repay my loan?
When do I start repaying my loans?
If later I decide to switch to a different repayment plan, can I do so?
Can I pay more than the minimum loan payment required each month?
Should I continue paying the student loans that I am consolidating while my application is being processed?
Are there any negative consequences to student loan consolidation?
Why should I apply now?
The U.S. Congress and Department of Education have raised interest rates on federal student loans. The rate on federal Stafford loans rose by nearly 2 percent on July 1, 2006.
If you are a recent law school student or graduate and you have not yet consolidated your student loans, this latest rise in interest rates is critical news for you. Under the current rates, you are probably spending hundreds of dollars each month in added interest.
Interest rates on student loans are adjusted each year on July 1st. Interest rates have increased significantly over the past two years. Any interest rate increase could have a major affect on the amount you pay over the life of your consolidation. In order to ensure you receive the lowest rate possible, you must consolidate now.
What do I need to do?
At Law School Loans, our trained professionals have experience in setting up consolidation loans, so you can begin saving sooner. All you need to do is contact us via this website, and we will get you started! We'll review your information with you, process your application, and work with your current lenders to ensure that all your loan information is up to date and accurate. You finish the process with a single loan; a low, fixed rate; a significantly lower loan payment; and the peace of mind that you have improved your financial situation now, when you need it most. It's that simple.
How much can I lower my monthly payments?
By extending your loan term or selecting one of our graduated repayment plans, you can lower your monthly payments by as much as 60 percent. You may also qualify for interest-only payments. Your consolidation loan specialist will help you understand your options. In addition, with a Law School Loans Consolidation Loan, there is NO PENALTY for early repayment of your loan. However, please note: By extending your payments, your overall financial obligation may increase because you will be making payments (principal plus interest) for a longer period of time. If you do not choose to repay your loan in full prior to the end of the extended period, the total cost of your loan will be greater than what you would have paid if you had not extended the term.
How do I know if I'm eligible for a consolidation loan?
To be eligible for a consolidation loan from Law School Loans, you must have at least $10,000 in eligible outstanding loans, and you must not be currently in default on you Federal student loans.
What is the interest rate on a federal consolidation loan?
The fixed interest rate on your Law School Loans loan is based on the weighted average of the interest rates of the loans you consolidate (rounded up to the nearest 1/8th percent). For information on your exact current and possible future interest rates, please call a federal loan specialist at 800.659.8344.
How much does it cost to consolidate my federal Loans?
Nothing. There are no fees required to apply for a Law School Loans consolidation loan.
Once I have taken out a consolidation loan, can I add any new loans to it?
Yes. Within 180 days of the funding date of your Law School Loans consolidation loan, you may add additional eligible loans to your consolidation loan.
What if don't know who currently holds my loan?
When you call 800.659.8344, you can get free information on all your loan holders from a government-authorized consolidation loan specialist. Again, this information is free; and you can obtain it without any obligation. If you prefer to do the legwork yourself, you can find lender names and addresses in your repayment information for each of your loans. Alternatively, you can go to lawschoolloanreport.org to access all your student loans.
Will you check my credit before approving me for a consolidation loan?
No. There is no credit check to obtain a federal consolidation loan through Law School Loans. However, you must not be in default on a federal student loan.
What are my repayment plan options, and how long do I have to repay my loan?
You may choose one of several repayment options for your federal consolidation loan. The repayment term can be a maximum of 30 years, depending on the total amount of your student loans.
- Equal Payments:
This option provides equal monthly payments over the term of the loan.
- Select 2/Graduated Payments:
This option allows for interest-only payments for the first 2 years of repayment. In the third year, payments increase to level installments of principal and interest payments for the remaining term of the loan.
- Select 5/Graduated Payments:
This option allows for interest-only payments for the first 2 years of repayment. In the third through fifth years, payments increase to include a portion of principal. In the sixth year, payments increase to level installments of principal and interest payments for the remaining term of the loan.
- Income-Sensitive Payments:
This option provides for payments to be adjusted annually based on your expected total monthly gross income from employment and all other sources. For spousal consolidation loans, monthly payments are adjusted according to combined monthly incomes. Your account will initially be disbursed at the graduated Select/2 graduated repayment plan. After the consolidation loan is disbursed, you must contact your servicer to qualify. Once eligibility is determined, your servicer will calculate your new payment.
- Extended Equal Payments:
This option allows up to a 25-year repayment term of equal payments.
- Extended Select 2 Payments:
This option allows up to a 25-year repayment term with the Select 2/Graduated Payment plan.
- Extended Select 5 Payments:
This option allows up to a 25 year repayment term with the Select 5/Graduated Payment plan.
All Extended Repayment Plans are for qualified borrowers with more than $30,000 in eligible loans. Applicants interested in any of the Extended Repayment Plans should contact a loan counselor to determine eligibility.
The length of time you can choose to repay your loan is dependent on your total loan balance, both for those loans you are consolidating and for any additional education loans that you have, but are not consolidating.
| If your total loan balance is: |
Your maximum repayment period is: |
| $7,500 to $9,999 |
12 years |
| $10,000 to $19,999 |
15 years |
| $20,000 to $29,999 |
20 years |
| $30,000 to $59,999 |
25 years (with extended repayment plan) |
| more than $60,000 |
30 years |
Note: : Maximum repayment period excludes authorized periods of deferment and forbearance.
When do I start repaying my loans?
Once your loan has been funded, you will receive a Loan Consolidation Disclosure Statement and Repayment Schedule from the servicer of your new Law School Loans Consolidation Loan. Thirty days from the date your loan is funded, you are required to begin repayment according to that schedule.
If later I decide to switch to a different repayment plan, can I do so?
You may choose to change your repayment plan after your loan has been consolidated. There is also no prepayment penalty, so you may pay more than your scheduled payment at any time.
Can I pay more than the minimum loan payment required each month?
Yes, and by doing so, you can shorten your overall loan term and decrease your interest costs. The extra money you send in each month is applied directly towards the principal balance of your fixed interest rate loan, so you can pay your loan off faster. Best of all, you can pay off your consolidation loan early without penalty or fee.
Should I continue paying the student loans that I am consolidating while my application is being processed?
Yes. It is extremely important to continue to make all of your regular payments on the loans that you have selected to consolidate until you receive your new Loan Consolidation Disclosure Statement and Repayment Schedule from your new loan servicer.
Are there any negative consequences to student loan consolidation?
If you take a longer amount of time to pay off your student loan debt, you will pay more interest over the course of loan repayment. However, because there are no prepayment penalties and because consolidation give you a simple-interest loan, if you continue making the same payments you were making prior to loan consolidation, you will not pay more in interest and may pay off the loan even more quickly than you would have paid off your previous loan.
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Student loan consolidation is the first step towards a secure and prosperous financial future. You can invest the money you save in interest each month, or use it to pay off other debts.
