Consolidation

Loan Consolidation FAQS:
What is Student Loan Consolidation?
Student loan consolidation combines several existing student loans into one new loan.  Once consolidated, you enjoy the benefit and convenience of lower monthly payments, a single fixed interest rate and one monthly payment.

Why should I consolidate my student loans?
Simple, you can significantly lower your monthly payment and take advantage of the current fixed interest rate. Instead of making several payments monthly, we offer you one easy monthly payment.   Once consolidated, your current repayment schedule is eliminated and your new lower monthly payments will take effect.  We offer four different repayment options that can be changed without penalty once per year. 

There are no application fees and no prepayment penalties!

Which loans are eligible for consolidation?
The federal student loans you can consolidate include:
Federal Stafford Loans, unsubsidized and subsidized (including Guaranteed Student Loans (GSL))
Direct Stafford Loans
Federal Supplemental Loans for Students (formerly Auxiliary Loans to Assist Students/ALAS and Student PLUS Loans)
Federal Perkins Loans, formerly National Defense/National Direct Student Loans (NDSL)
Health Professions Student Loans, including Loans for Disadvantaged Students (HPSL)
Federal Insured Student Loans (FISL)
Federal PLUS (Parent) Loans
Direct PLUS Loans
Federal Consolidation Loans, unsubsidized and subsidized
Nursing Student Loans (NSL)

You may consolidate an existing Consolidation Loan if you are combining that loan with at least one other eligible loan.

What is the Interest Rate?
The interest rate on a Federal student loan consolidation is set according to Federal Law. Each and every consolidator must abide by this law that states the following: The interest rate shall be calculated by taking the weighted average of the interest rates on the loans being consolidated, rounded up to the nearest one-eighth of one percent. This rate is fixed for the life of the loan and cannot exceed 8.25%.

What does this Cost?
NOTHING!!!!  It's hard to believe, but there are no application or processing fees!  Additionally, there are no prepayment penalties at any time. 

Why choose Affinity Direct?  
Apart from the reduced monthly payments you will enjoy by consolidating, Affinity Direct offers one of the most rewarding borrower benefit packages available.  You can receive our 1.0% Cash Reward benefit upon proof of making your first three (3) initial, consecutive, on-time monthly payments on your new federal consolidation loan. 

How do I know if I am Eligible?
Affinity Direct requires that you meet the following criteria in order to apply for our federal student loan consolidation program:
Affinity Direct requires that you consolidate more than $20,000 in eligible federal student loans.
Affinity Direct can not consolidate any federal student loans that are in default status.   However, we can consolidate your other federal student loans that are not in default if you meet eligibility requirements.
In order to consolidate your federal student loans with Affinity Direct, you must be out of school or attending school only part-time.

What is the Maximum/Minimum loan limit for Consolidation?
The Affinity Direct student loan consolidation program requires a minimum $20,000 outstanding balance at the time of application.  There is no maximum limit on the amount you can consolidate with Affinity Direct.

How can I find out what my payments will be?
A statement and disclosure document will be sent to you that will include your estimated payment amount and interest rate.  Your actual payments and rates will be determined by our servicer according to your current loans and applicable rules and federal guidelines. Your new Loan Consolidation Disclosure Statement and Repayment Schedule will be sent to you from the federally authorized servicer of your new Federal Consolidation Loan. Thirty Days from the date your loan is funded, you are required to begin repayment according to that schedule.

If I consolidate with Affinity Direct, what do I do regarding my current student loan payments?
Please continue making your monthly (or regularly scheduled) payments until our servicer notifies you that your federal student loan consolidation is complete.  At that time, our servicer will send your new repayment schedule.  

How long will it take for my Consolidation to be processed?
It will typically take between 45-60 days for the entire Loan Consolidation to be processed.   At that time, your new payment plan begins and your first payment is usually due within 30 days after the consolidation is completed.