What is a Private Consolidation Loan?

Private Consolidation Loans can be used to consolidate all private education loans, federal student loans and can be used to obtain funds for upcoming education-related expenses such as tuition, room and board, off-campus housing, living expenses, transportation, books, fees (even a computer) and a previous year's school fees.

How much can I borrow?

Minimum: greater than $10,000; Maximum: $250,000.  

What kind of debt can be consolidated?

Private Consolidation Loans can be used to consolidate all education-related debt, including all private student loans , graduate private student loans, and any federal student loans.

NOTE: While Private can consolidate federal student loans, you may want to consider a federal consolidation loan as it is subsidized by the government and offers a lower interest rate.

How is the interest rate determined for a Private Consolidation Loan?

The interest rate for a Private Consolidation Loan is the Prime Rate, adjusted monthly (8.25% as of 6/9/2006), plus a margin depending on your credit history. The margin will initially be between 0.00% and 3.50% but may be adjusted based upon changes in the "Margin Adjustment Index".

Can I consolidate loans for more than one student?

Yes, parents can consolidate the loans of one or more children. Also, spouses can consolidate their loans into one Private Consolidation Loan.

Can I borrow funds for my last year of school and consolidate all my debt?

Yes, you can consolidate all your education-related debt as well as use the Private Consolidation to pay for your current year's cost of attendance and other education-related expenses.

Applying For a Private Loan

What information do I need to provide to apply for a Private Consolidation Loan?

We'll be happy to walk you through the process.   Just call or visit Student Aid Centers near you. Whether you choose to visit, call or apply online, please have the following information available.  

• Full name
• Date of birth
• Social Security Number
• Permanent address and number of years at that address
• Previous address if less than one year at current permanent address
• Home telephone number
• Temporary school telephone number
• Employer and how long employed
• Employer address(es) and telephone number(s)
• Gross annual salary
• Previous employer if less than one year at current employer
• Previous employer address(es) and telephone number(s)
• Monthly rent or house payment
• Reference: nearest relative or friend not living with you. Must be different than reference for co-borrower (Name, Address, Home / Business Telephone Number).

How long does it take to be approved for a Private Consolidation Loan?

Pre-approval occurs in as little as two minutes with final approval occurring in as little as 1 day after you return all the required documentation and signed forms.

What is an acceptable proof of income?

Acceptable proof of income includes:

• W-2 form, which must be from the previous tax year.
• Pay stub, which must be dated within the past 90 days and must indicate the applicant(s) name and Social Security Number, company name and gross annual salary to date.
• Letter from employer, which must be on company letterhead and must state that the applicant(s) is employed with details on her/his annual income (or hourly wage plus hours worked per week). The letter must be signed and dated and must have a verifiable contact phone number.

Note: Acceptable proof of income must be provided before final loan approval.

What is an acceptable proof of enrollment?

Acceptable proof of enrollment includes one of the following items:

• A copy of your tuition bill from the school, or
• A copy of your acceptance letter from the school verifying enrollment, or
• A copy of your registration schedule from the school printed with your name

Note: We only need proof of enrollment if you are seeking to consolidate a new education loan with us or if you are seeking to defer your payments (interest only) during an in-school period.