Frequently Asked Questions – Student Loan Payment Programs

You've got questions, and we've got answers. Application time, Consolidation, Fees, Defaulting - we cover it all here.

How long does it take to submit the application for consolidation of my federal student loans and be accepted into the government approved Student Loan Payment program?

With Student Loan Guidance Group, the application process takes between 30 and 90 days. Returning the Department of Education requested documentation to us in a timely manner will shorten the application process.  So, how fast you get those documents back to us determines the length of the process and time needed to get into your new Student Loan Payment.

Do I need to continue to make my student loan payments while I am in the application process with Student Loan Guidance Group?

Student Loan Guidance Group encourages you to make all prior scheduled student loan payment on time until you get notification that your loans have been consolidated and you have a new Student Loan Payment. Among other issues, making late payments on your student loans may have a negative affect on your credit scores.

What will my new monthly student loan payment be after getting a consolidation through the government with the financial guidance of Student Loan Guidance Group?

No two student loan consolidations are the same. Factors that affect your student loan payments after consolidation include: your annual income, the size of your family, loan balances,  interest rates  and your new repayment plan.  At Student Loan Guidance Group, we will help you achieve a consolidated student loan with a lower monthly Student Loan Payment that is affordable for you and your family.

What if my student loans have been previously consolidated and the payments on that consolidated loan are now delinquent?

Majority of the time, when you have already consolidated your student loans, you will not be able to get a second consolidation as a means to get you out of default.  In a case where you consolidated previously under the FFEL Consolidation Program, we may be able to help you.  In this case, Student Loan Guidance Group will assist you in working with your current lenders to find the most affordable solution to returning your loans to good standing.

Will a student loan consolidation allow me to receive additional student loans to go back to school?

Once Student Loan Guidance Group completes your federal student loan consolidation, you will be eligible for additional financial aid for your education.  You may also receive a deferment of the payment on your recently consolidated student loans so long as you are enrolled for at least what is considered half time.

How does a federal student loan consolidation with Student Loan Guidance Group affect my credit?

Student loan consolidations with Student Loan Guidance Group have a positive effect on credit. Once consolidated, the loans will show up as paid off and the default no longer reports. This will help you improve your credit scores when applying for credit cards, automobile loans and mortgage financing. If you are current on your federal student loans during the time of processing the consolidation, you will not see a negative mark on your credit or a reduction of scores so long as you make all scheduled payments on your existing student loans.

Will I have to pay all of the collection fees and costs when I get a student loan debt consolidation through the government with Student Loan Guidance Group?

When you originally received your federal student loans, you signed a document that stated you agreed with the terms of your loans.  When you signed for your federal student loans you also agreed to the dollar amount of the loans, the monthly payment, the interest rate, the loan term and collection costs should your loans enter into default status.

Collection costs may be as much as 24% with those fees added to the balance of the loan. Those fees are recalculated annually and will depend upon administrative costs that are subject to change and whether or not the defaulted student loans are submitted to a third party collection agency or attorney.  Fees for collection activity may add to your existing student loan balances.

What could happen if I default on my federal student loans?

Defaulting on your federal student loans could create serious issues.  These issues come to pass when you choose not to voluntarily make payment arrangements. Communication is the best policy when it comes to defaulted federal student loans, and when you do not reach out to your loan servicers, they will assume that you are trying to avoid the debt.  When you choose the no communication strategy, you may have your wages garnished, your state and federal tax refunds seized, and lose your professional licensing.