SSL Certificate


Home | FAQ
Login  
FAQ
 

Frequently Asked Questions

How To Guide for Our Website

Our Frequently Asked Questions page can answer most questions you have regarding the servicing of your student loan account. Just select a category or topic within a category and scroll to a question that suits your needs.


    Q: Can my spouse and I consolidate all of our loans into one loan?
    A: No, married couples may not consolidate their eligible loans jointly.
    [ Back to top ]

    Q: Can I consolidate my loans while in school?
    A: No, you must be in the grace period or have entered repayment on each loan being consolidated.
    [ Back to top ]

    Q: Can I consolidate defaulted student loans?
    A: Yes, if a lender accepts defaulted loans for consolidation and if satisfactory repayment arrangements are made with the holder of each defaulted loan (3 or more consecutive on-time full monthly payments) or an income sensitive repayment schedule is set up with the Consolidator.
    [ Back to top ]

    Q: If I have already applied for consolidation with one lender, can I apply with another lender that offers a more appealing loan?
    A: No, a borrower must certify that only one application for Consolidation is pending.
    [ Back to top ]

    Q: If all my FFELP loans are held by one lender, can I request consolidation from another lender?
    A: Yes, as long as they are an authorized Lender for FFELP Consolidation Loans.
    [ Back to top ]

    Q: Can I consolidate my private loans with my other student loans?
    A: No, only the following loans are eligible for consolidation:
    • FFELP loans (Stafford - sub and unsubsidized, PLUS, Grad Plus, SLS, and Consolidation)
    • FDLP - Federal Direct Loans (Stafford, PLUS, Grad Plus, SLS, and Consolidation)
    • FISL loans - Federally Insured Student Loans
    • Federal Perkins loans
    • HPSL - Health Professions Student Loans (including LDS - Loans for Disadvantaged Students)
    • NSL - Nursing Student Loans
    • HEAL - Health Education Assistance Loans*
    *Conduent does not consolidate HEAL loans.


    [ Back to top ]

    Q: Can I add other student loans to my Consolidation loan? How?
    A: Yes, if the loans are eligible and the request is made within 180 days. Contact Conduent Consolidations at 1-800- 283-6221 and ask for a "Request to Add Loans". You can also download the request to Add Loan Application at www.conduenteducation.com. Click on Loan Consolidation and select Consolidation downloads.
    [ Back to top ]

    Q: Do I pay a guarantee or origination fee for consolidating my loans?
    A: No, lenders can not charge a guarantee or origination fee for consolidation.
    [ Back to top ]

    Q: What is an LVC?
    A: An LVC is a Loan Verification Certificate, which is a document that must be completed by the holder(s) of each loan to be consolidated. It is used to obtain information on the underlying loans and to quote a pay-off.
    [ Back to top ]

    Q: How is the interest rate calculated?
    A: It is a weighted average of the interest rates on the loans being consolidated, rounded up to the nearest 1/8%, not to exceed 8.25%. The outstanding balance is multiplied by the current interest rate, the subtotals are added, then divided by the sum of the outstanding balances and rounded up to the nearest 1/8 %. Example provided below:

    Outstanding Balances Interest Rate
    $3500 7%
    $3200 5%
    $5500 9%
       
    $3500 x .07 = $245
    $3200 x .05 = $160
    $5500 x .09 = $495
    $12200
       
    $245 + $160 + $495 = $900
    $900 / $ 12200 = .07377 or 7.377%
       
    7.377 % rounded to the nearest 1/8 = 7.5%

    [ Back to top ]

    Q: What will be my outstanding balance on my Consolidation loan?
    A: It will be the total of all outstanding principal balances, unpaid accrued interest, late charges and collection fees (if applicable), for the loans included in the consolidation request.
    [ Back to top ]

    Q: When does interest begin accruing on my Consolidation loan?
    A: Interest begins accruing from the date the funds transfer from the consolidating lender to the holder of the underlying loans.
    [ Back to top ]

    Q: What happens if the consolidating lender does not pay off all of my student loans or a portion of a loan?
    A: If an entire loan was not included in the consolidation and Conduent is servicing the consolidation, you should contact the Conduent Consolidation Department at 1-800-283-6221 to request an add-on. If a portion of a loan was not paid off during the consolidation process and Conduent services the underlying loans, contact our Borrower Services Dept at 1-800 -835-4611. If a request has not already been made, an Underpaid Letter will be submitted to the Consolidator. If a portion of a loan was not paid off and Conduent does not service the underlying loans, you should contact the servicer and request that they send an Underpaid Letter.


    [ Back to top ]

    Q: When is my first payment due?
    A: A first payment due date will be established within 45-60 days after the date on which the last disbursement discharging the underlying loans is made.
    [ Back to top ]

    Q: What is my new repayment term?
    A: The following table outlines the repayment terms according to the outstanding balances on all education loans (regardless of whether they are included in your Consolidation loan):

    Sum of all Education Loans Maximum Repayment Term
    Less than $7500 10 years
    $7500 - $9999 12 years
    $10,000 - $19,999 15 years
    $20,000 - $39,999 20 years
    $40,000 - $59,999 25 years
    $60,000 or more 30 years


    [ Back to top ]

    Q: What types of repayment plans does Conduent offer for Consolidation loans?
    A: Conduent offers the following repayment plans:

    • Standard - a fixed monthly payment
    • Graduated repayment - increased payments over the term of the loan
    • Income-sensitive - payments are adjusted annually based on your expected income
    • Extended repayment - available to borrowers with loans that total more than $30,000, will extend repayment term from 20 to 25 years

    [ Back to top ]

    Q: Will my Consolidation loan be eligible for deferments or forbearances?
    A: Yes, if the consolidation loan is disbursed on or after 7/1/93, the consolidation loan may qualify for the following deferment/forbearance types:
    • Education-related (fellowship or rehabilitation training)
    • Unemployment
    • Economic Hardship
    • Forbearance (all types)

    [ Back to top ]

    Q: Are there any penalties for prepayment or paying the loan off early?
    A: No, there are no penalties for prepayment or paying the loan in full prior to the final due date.
    [ Back to top ]

    Q: Can I consolidate a previously consolidated loan?
    A: Effective 7/1/06, reconsolidating an existing consolidation loan is not allowed. You can consolidate an existing consolidation loan if you have another FFELP loan.
    [ Back to top ]