How Long Does Student Consolidation Take??

ecrcg · #1 (**permalink**) 05-09-2007, 12:57 PM

I am getting a lot of solicitations on student loan consolidation....how long does consolidation take??

creditcardfree · #2 (**permalink**) 05-09-2007, 05:40 PM

My experience dates back at least 4 years, but it did take a couple of months. I recall something about them holding on to the paperwork so that my dh qualified for the "new" lower rate.

Just call your current lender to ask.

b4freedom · #3 (**permalink**) 05-09-2007, 07:15 PM

A few minutes. Read the fine print and make sure it's a good company. For example, this is the fine print from the link provided above. "One late payment within the 1st 36-months results in an immediate loss of the reduction benefit." They do this because they know that a high number of people screw up the first 36 months. And they make it hard for you to find the rate online.

There are a ton of companies out there. A lot of them try to get "tricky". Something that was once good has turned into the same type of scams that credit card companies are known for. In fact, how do you think all of those companies got your info? They went into a federal database and took it unethically. A story about some problems: House backs crackdown on student loan business - Yahoo! News

Also, make sure it's a rate you want. Once you do it, your not allowed to do it again, unless you get more student loans. For example, we got my wife in at 2.25% (unheard of now). If rates drop over the next year, but you are locked in now, your stuck at that higher rate.

PharmacistRealtor · #4 (**permalink**) 05-31-2007, 05:31 AM

I don't know how long one takes but why are you consolidating? Consolidating removes your ability to pay off the higher interest loans first...

fairy74 · #5 (**permalink**) 06-06-2007, 10:28 AM

It depends on how many people are trying to consolidate at the same time. (i.e. if a rate hike is about to go into effect, a lot of people apply at the same time). Also it depends on how many other lenders you have, who have to send back those verification forms. It took a couple months to do mine, but they locked in the rate when my application was complete, not when the boneheads at Wachovia finallly got the verification paperwork back to them.