What are the benefits of consolidation?

  • Reduces your monthly payment.
  • Locks in your interest rates - protect yourself from future rate increases
  • Simplifies your finances by having you make only one payment a month
  • Provides flexible repayment options

Federal Consolidation allows borrowers (parents or students) to lock in today's low rates and to combine several federal student loans to simplify loan repayment. Because repayment can be spread over a longer time period, your monthly payment amount will likely be lower.  With our Student Loan Consolidation program, you can reduce your interest rate by an additional 1.25% with our borrower benefits plan.

Why should I consolidate with DSS?

A few very simple reasons:

  • When you call us, you can reach a consolidation expert with real answers, not get the runaround
  • Great borrower benefits!
    • 0.25% off for automatic checking account deduction
    • 1% off after 36 consecutive on-time payments for loans over $20,000 total
    • Other companies require $50,000 or more, or discount after 4 years instead of 3!
  • Fast consolidation turnaround - averaging 30 to 60 days instead of the industry standard 120 - 180 days

Who is eligible for student loan consolidation?

You must have more than $7,500 in outstanding federal student loans, and no longer be in school half time or more.

Want to find out if you are eligible? Give us a call toll-free at (866) 859-4622 and we can confirm your eligibility.

What types of loans are eligible for consolidated?

  • Stafford Loans - Subsidized and Unsubsidized
  • Federal Direct Stafford Loans - Subsidized and Unsubsidized
  • HEAL/HPSL Student Loans
  • Parent PLUS Loans
  • Federal Direct Parent PLUS Loans
  • Federal Consolidation Loans
  • Federal Direct Consolidation Loans
  • Perkins Loans

What about consolidating with my spouse?

A great idea, and perfectly allowable, too. However, you and your spouse must be able to individually qualify for a consolidation.

You and your spouse can consolidate together, making for one easy payment per month. There are two caveats you should be aware of:

  1. Should you or your spouse pass away , the portion of the loan held by the deceased is forgiven.
  2. Should you divorce, one of you will be responsible for the loan in its entirety.

I consolidated in the past, can I do it again?

It depends. Consolidation is the combination of many loans into one.  If you have consolidated in the past with someone other than the US Department of Education, you can't do it again unless:

  • You have new loans that were not included in the original consolidation.
  • Or, you have multiple consolidations from different lenders.

You can, however, consolidate with the Department of Education and then reconsolidate with us, even if you've consolidated before with another company.

Call us toll-free (866) 859-4622 or email us with questions!

How is the consolidation loan repaid?

The first payment is due no more than 60 days from the date the Consolidation loan is disbursed. Repayment schedule choices include:

  • Standard payments (fixed monthly payments over a fixed time)
  • Graduated payments (payments which gradually increase over the years)
  • Income-Sensitive payments (variable payment amounts based upon annual income) and
  • Extended payments (more than $30,000 over a 25 year period or more than $60,000 over a 30 year period).

Are there any fees to consolidate?

No, there are no fees to consolidate federal student loans.

Is there a credit check required to consolidate?

No, there is no credit check, because your federal student loans are guaranteed by the US Government.

Are there any early payment/repayment fees or penalties?

No, there are no early repayment penalties for a student loan consolidation. The government wants its money back. To make extra payments, consolidate now, and then when your payment schedule begins, simply specify "Extra payment to principal" on your early payments.

Did you know that early repayments are interest-free? It's true! Every dollar beyond your required monthly payment is paid towards the principal - it's like an interest-free payment!

How do I apply for consolidation?

Loan Specialists are available to assist you with the application process. We can help you complete the necessary forms accurately. We make everything as simple as possible.

  1. Apply by phone - call us today toll-free at 866-859-4622!

Do I continue making loan payments while my application is processing?

Yes! Until you are notified that your loans have been paid off through the consolidation process, you should continue to make your student loan repayments. Since consolidation can take anywhere from 30 - 90 days, it's important that you don't fall behind on payments. Once your consolidation is complete, we will send you a new repayment schedule, with your new monthly payment and due date.

How long does a consolidation take?

Consolidation can take anywhere from 30 to 90 days; in rare cases it may take longer. The reason this takes as long as it does is that we retrieve payoff statements (called LVCs - Loan Verification Certificates) from your lenders. Some lenders are more cooperative than others.

Am I still eligible for deferment or forbearance?

Yes! One of the greatest benefits of federal student loan consolidation is that you retain all your federal borrowing privileges, such as:

  • Economic hardship deferment for up to 36 months without loosing borrower benefits
  • Unemployment deferment for up to 36 months without loosing borrower benefits
  • Deferment of your consolidation payments when you return to school
  • Forbearance of your consolidation for up to 36 months without losing borrower benefits
  • Forgiveness of your entire loan if you pass away

Did you know that your deferment and forbearance clock resets when you consolidate? It's true! If you've already used part of a deferment or forbearance on your existing federal student loans, when you consolidate, it's essentially a new loan, so your deferment and forbearance clocks reset, giving you a clean start!

Why Consolidate?

The very best time to consolidate your student loans is immediately after graduating, before your grace period ends. Doing so allows you to lock in the lowest possible interest rate on your loans.

Consolidating is a great option whenever you want to increase your monthly cash flow - by consolidating, you extend your repayment term and get additional discounts on your existing rates, which reduces the monthly payment you make.