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.

Learn more about loan consolidation here...

How much are my payments going to be?

This ultimately depends on the current interest rate set by the Federal Government, but with SLH 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 SLH 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.

Know more about loan consolidation here...

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.

Learn more about credit checks here...

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.

Know more about updating credit reports here...

Here is what our Default Federal Student Loan Help will do for you:

• Stop or prevent Wage Garnishment
• Prevent Tax offset
• Prevent Judgments
• Stop the harassing telephone calls as well as demand letters to your home and work
• Stop the high interest and collection charges that accrue daily
• Help restore your credit
• Combine all of your federal loans into one payment from one lender
• You will be eligible for federal loans once the process is complete
• You will be eligible for forbearance and deferments
• Help educate on the advantages and disadvantages of rehabilitating their loan.

Part 2 - If you default on your student loan:

• Your defaulted loans will appear on your credit record, making it difficult for you to obtain an auto loan, mortgage, or even credit cards. A bad credit record can also harm your ability to find a job.
• You won't receive any more federal financial aid until you repay the loan in full or make arrangements to repay what you already owe and make at least six consecutive, on-time, monthly payments. (You will also be ineligible for assistance under most federal benefit programs.)
• You'll be ineligible for deferments.
• Federal interest benefits will be denied.
• You may not be able to renew a professional license you hold.

Once a student loan goes into "default" status the full balance of the loan becomes due immediately. It also means that other options for delaying payment, including student loan deferment and forebearance, can no longer be used.

Eventually, unpaid defaulted student loans can have long-term consequences beyond just the loan directly. For example, your credit report will take a hit. Once the loan has been forwarded for collection your wages can be garnished and your federal income tax refunds can be withheld. You also lose your elgibility for other types of federal loans.

Consolidating your defaulted loans into a new loan will show that your old defaulted loans have been paid in full. You will sign a new promissory note, and be able to start from scratch! With only one lender to deal with and one monthly bill, you will find it easier than ever to manage your debt. Also, get reinstated with Deferment and Fobearance options.

Know more what to do about defaulted loans here...

If you default on your student loan:

• Your loans may be turned over to a collection agency.
• You'll be liable for the costs associated with collecting your loan, including court costs and attorney fees.
• You can be sued for the entire amount of your loan.
• Your wages may be garnished. (Federal law limits the amount that may be garnished to 15% of the borrower's take-home pay.)
• Your federal and state income tax refunds may be intercepted.
• The federal government may withhold part of your Social Security benefit payments. (The US Supreme Court upheld the government's ability to collect defaulted student loans in this manner without a statute of limitations in Lockhart v US (04-881, December 2005).)

Read more about defaulted student loans here...