FAQ

Your Questions. Answered.

What are the
Frequently Asked Questions?

Private Loan FAQs

Who is eligible?

Prospective borrowers must be a graduate of an eligible school and must be or become a member of a participating credit union. If you’re currently not a member of a credit union, you will be prompted to select one that you can join during the application process. A borrower or cosigner must have a gross monthly income of $2,000 or greater and meet our credit requirements. Choosing a creditworthy cosigner will increase the likelihood of being approved and may lead to a lower loan rate. You can apply without a cosigner if you meet all of the credit criteria by yourself.

Do I need cosigner?

In some instances, a cosigner is required to obtain a Private Student Loan Consolidation. A creditworthy cosigner increases the likelihood of your loan approval and may lead to a lower loan rate. Creditworthy borrowers who meet the credit requirements on their own may apply without a cosigner.

Will the cosigner credit record be affected?

Yes, in a cosigned loan both the borrower and the cosigner are jointly liable for making all loan payments. The loan will appear on both the borrower and cosigner’s credit report.

Is the cosigner responsible for repaying the loan??

If the borrower fails to repay the loan, then the cosigner is responsible for repaying the loan. However, the cosigner may be released of this obligation once the
borrower is able to meet certain criteria to determine creditworthiness and makes 12 consecutive and on-time full payments of principal and interest.

How much can I borrow?

The minimum you can borrow is $7,500 per year. The maximum you can borrow lifetime is $125,000 for undergraduate debt and $175,000 including graduate school debt.

How long is the process?

You should allow yourself 3-4 weeks from the time of the initial application until the loan is disbursed, but it can take as little as one week depending on the borrower. Remember, once the process is complete, you should continue to make payments to your previous lenders until the loans are paid off. Please allow up to two weeks after the loan is disbursed.

Goverment Loan FAQs

Who is eligible for a Federal Consolidation Loan?

To qualify, borrowers must have at least one Direct Loan or Federal Family Education Loan (FFEL) that is in grace, repayment, deferment, or default status. Loans that are in an in-school status cannot be included. Borrowers who do not have Direct Loans may be eligible for a Direct Consolidation Loan if they include at least one FFEL Loan and have been unable to obtain a Federal Consolidation Loan with a FFEL consolidation lender or have been unable to obtain a Federal Consolidation Loan with income-sensitive repayment terms acceptable to them or intend to apply for loan forgiveness under the Public Service Loan Forgiveness Program. Borrowers who have only a Direct Consolidation Loan cannot consolidate again unless they include an additional loan.

Can I consolidate if my loans are in default?

Borrowers can consolidate most defaulted education loans, if they make satisfactory repayment arrangements with their current loan holder(s) or agree to repay their new Direct Consolidation Loan under the Income Contingent Repayment Plan or Income Based Repayment Plan.

Can I consolidate a PLUS Loan?

Yes, PLUS Loans can be consolidated into a Direct Consolidation Loan.

Can I consolidate a Perkins Loan?

Yes, it is possible to consolidate Perkins Loans into a Direct Consolidation Loan if borrowers include at least one Direct Loan or Federal Family Education Loan (FFEL) in their request. Perkins Loans cannot be included in a Direct Consolidation Loan by themselves. Furthermore, all Perkins Loans consolidated into the Direct Loan Program will be included in the unsubsidized portion of the Direct Consolidation Loan. Borrowers should carefully weigh the advantages and disadvantages of including a Perkins Loan in a consolidation loan. While the borrowers gain the benefits of the Direct Consolidation Loan Program, they also lose the benefits associated with the Perkins Loan Program.

Can I consolidate my loans if I am enrolled in school?

The minimum you can borrow is $7,500 per year. The maximum you can borrow lifetime is $125,000 for undergraduate debt and $175,000 including graduate school debt.

Can I consolidate my loans that are in grace?

Yes, Borrowers who consolidate loans that are in grace may receive a lower interest rate on their Direct Consolidation Loans if they are consolidating variable rate loans. However, once grace status loans are consolidated borrowers lose any remaining grace period. Borrowers receive their first bills within 60 days after the new Direct Consolidation Loan is made.