Federal Consolidation Loan eligibility

Eligibility and Terms

Combine one or more existing federal student loans into a single new loan.

Eligibility

• Effective June 1, 2008, borrowers must have at least 1 PHEAA/AES-guaranteed loan to be eligible for loan consolidation.
• These loans must be in repayment or a grace period.
• You do not need a co-signer.
• You do not need to be employed.
• Your credit rating does not affect your eligibility.

You may consolidate a prior Federal Consolidation Loan if you have acquired additional federal education loans since you last consolidated or did not include all eligible loans in your previous consolidation.

Features & Terms

Features	Terms
FIXED Interest Rate	Standard consolidation loan is available at today's grace rate of 3.61%. Your rate is calculated as the weighted average of all loans being consolidated, then rounded up to the nearest 1/8 of a percent. Statutory interest is used when calculating the weighted average. If you already have a fixed interest rate on all loans, the consolidation loan will have a higher fixed rate than the original loan. Get a .60% rate reduction for consolidation during your current loan's grace period. Get an immediate .25% rate reduction for automatic direct debit payments. Will not exceed 8.25%.
Incentives	Some loans may have incentives that will be lost when the consolidation takes place. If a previous consolidation is included in a new consolidation, current incentives will be lost.
Fees	None
Loan Repayment	Repayment begins within 60 days of the loan fund payout. The loan funds are sent directly to the creditor. No prepayment penalties. No grace period.
Repayment Term	Based on the total loan balance being consolidated, up to 30 years.
Repayment Options	May take up to 30 years to pay with flexible repayment options - level, graduated and income sensitive.
Loan Management	Pay just one bill. Get single-point servicing for the life of the loan with AES. We are with you every step of the way

Apply for this Loan

• Submit an online consolidation application.

Note: The consolidation process takes approximately 6-8 weeks. During this time it is important that you continue to pay the student loan bills you receive.

After You Apply

• We process your application and contact your existing loan holders, requesting a loan payout.
• Your loan holders provide us with the necessary information; the old loans are paid off.
• The balances are transferred to a new loan.
• We send you a Truth in Lending Disclosure Statement which outlines the term, balance, and monthly payment amount of your new loan.
• We send your first billing statement for your consolidation loan.

Check Application Status: Call our automated telephone system toll-free at (800) 338-5000 to obtain loan information, including the application date, estimated processing time, and any information required to process your request.