How Student Loan Consolidation Works

The following step-by-step guide will help you understand how consolidation works and how it will benefit you for years to come.
Step 1: Apply for Consolidation

The first step in consolidating your student loans is applying for a consolidation loan.
Step 2: Locate Your Student Loans

As a result of recent changes at the Department of Education, you'll need to provide your student loan information with your consolidation application. There are several ways that you can locate your student loans and the easiest is to contact the Borrower Tracking office of the Department of Education at (800) 433-3243.
Step 3: Sign and Mail

Once you have reviewed the promissory note, and understand the terms, you will sign and return the application. Either by eSignature online, or by sending the paper application back to the lender you choose to consolidate with.
Apply Now for Federal Student Loan Consolidation

Step 4: Application Processing

After your application is submitted for processing, the "loan retrieval" begins. The consolidating lender will contact your lenders for the exact amount you owe; this information is sent to them on a loan verification certificate, or LVC. This process can take up to 60 days depending on the response time from your lender(s).

Once the check is sent to your lender(s), your loans have officially been consolidated. You will receive a new statement from us detailing when your first payment is due, and when each payment is due thereafter. Your previous lenders can take a week or two to close out your accounts, so do not be alarmed if you get a statement from us, and a statement from your old lender. This is normal.

Your first billing statement from us will include the automatic checking account withdrawal enrollment form. It will also include information on any other discounts you are eligible for. Your previous Stafford loans are paid in full.