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When will my credit report be updated?
Credit reports are typically updated at the end of each month. Once the consolidation is complete your credit report will now reflect any of your defaulted student loans as “Paid in Full.” It will also show a new consolidated loan in current and repayment status. You can start to rebuild your credit with your new, low monthly payments on your consolidated loan. |
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Will there be a credit check?
On Federally funded Stafford Loans, there is NO credit check, so people with less than perfect credit do not have to worry about being approved for a consolidation. Credit checks are only done on defaulted Parent Plus Loans. |
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How much are my payments going to be?
This ultimately depends on the current interest rate set by the Federal Government, but with SLS you can lower your payments by up to 68%! You can use our loan calculator to calculate estimated payments after you consolidate with us.
Once the consolidation is complete you can log into your SLS account to view estimated payments, and you will also receive a disclosure statement from your final lender advising you of the amount of your monthly payments. |
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The summary letter shows that I owe less than I was supposed to owe. Is there a problem with my account?
The reason for the difference is that most collection agencies will waive a portion of the interest and fees that have accrued on the account as a result of it being paid off with a consolidated loan. It is up to the discretion of each agency as to whether or not any fees will be waived. |
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What if I cannot afford my payments once this process is complete?
With the new consolidated loan, all of your forbearance and deferment time has been restored. You simply need to call your lender to request that the loan be placed into either forbearance or deferment depending on your situation. |
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When do I start making payments?
Your first billing statement will be mailed to you 30 days from the date that the lender of your consolidated loan submits payment to your original lender(s). |
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Who is my new lender?
Once the consolidation is complete you will be receiving a disclosure statement from your final lender. This statement will instruct you where to remit your monthly payments along with the amount of your payments, interest rate and total balance outstanding. |
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Why is my loan being transferred from Direct Loans?
Your loan is being transferred from Direct Loans to your final lender in order for you to receive the benefits of consolidating your Federal Loans through Student Loan Solutions, such as the interest rate reduction and the reduction for setting up your monthly payments on automatic debit. |
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The collection agency keeps calling me. What should I tell them?
It is not in your best interest to advise the collection agency that you are consolidating. You can simply advise the collection agency that you are looking into getting your defaulted student loans paid in full through a loan. |
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The collection agency told me they wouldn’t sell my loans to you. Is this true?
No, this is NOT true. You have options, and you can call us to find out exactly what they are. |
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When will my garnishments stop?
Once your account is paid in full, your original lender is legally obligated to inform not only your employer to cease and desist the wage attachment or tax garnishment, but also the credit bureaus to whom they reported you in default. You will also receive a letter advising that your account has been satisfied through consolidation and paid in full. |
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How will this process benefit me?
First of all, you will get out of default! No longer will you have collection agencies calling you at home and at work, and you will no longer be charged any collection fees and collection interest rates that make your balances skyrocket. By getting your loans into a current status, you will not have to worry about wage and tax garnishment. You will also be able to apply and receive aid from the government again, such as private loans, a mortgage and financial aid. Further, consolidated interest is tax deductible, so you can claim it on your income tax statement. Once you are out of default, you have all the same privileges you originally obtained on these loans, such as deferment and forbearance! Call us today so that we can help you get out of default! |
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What is the difference between consolidation versus rehabilitation?
There are many differences between the two. 90% of people that begin rehabilitation programs don’t finish them. As soon as one payment gets returned late, the contract is null and void and you have to start over from the beginning (only after the 6-12 month period has expired). Also, you’re still being reported in default on your credit report for a 6-12 month period even though you are making on time monthly payments, which DOES continue to damage your credit. 25% of your payment still goes directly to the collection agency and the remaining 75% goes to collection fees and collection interest. You are also still accruing collection fees and collection interest while on a rehabilitation plan! Don’t allow this to happen to you! |
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When can I apply for more financial aid and go back to school?
Once the consolidation is complete you are eligible to apply for additional financial aid as you now qualify for all types of programs in order to complete your education. |
