What is a Federal Consolidation Loan?
Congress created the Federal Consolidation Loan Program to help former students make repaying student loans more affordable. It allows you to combine all of your eligible variable interest rate federal loans into one new fixed-rate loan with an extended repayment term. This typically lowers your monthly payments by up to 48% — or by as much as 54% if you are within your grace period. Your new loan will feature a fixed interest rate and low, affordable monthly payments.

What are the advantages of consolidating my loans?
Whether you're still in your grace period or actively repaying your student debt, there are plenty of reasons to take advantage of our Federal Consolidation Loan from Academic Lending Services. It all begins with the added financial flexibility you'll enjoy by lowering your monthly payments. But we can offer you even more than that:

• Lower payments means added cash each month for other expenses
• Just one convenient monthly payment covers all of your student debt, rather than several individual payments
• Extended repayment terms enhance your financial flexibility
• A lower debt-to-income ratio with your lower monthly payment - possibly improving your ability to finance a new car or home
• No prepayment penalties so you can pay off your debt whenever the opportunity arises and save on interest payments
• Professional, knowledgeable Loan Consultant who go the extra mile to get you the information you need, when you need it
• Convenient, easy application process - we'll help you every step of the way

Are there any fees or will my credit be checked before my loans are consolidated?
There are no fees or credit checks when you apply to consolidate your loans with us.

How much can I consolidate?
Generally, the required minimum balance is $10,000. However, there are some program exceptions so call for details.

Is there a limit to the number of loans I can consolidate?
No, as long as the loans meet the eligibility requirements.

What is the grace period interest rate discount?
The day federal student loans enter repayment, the interest rate on your Federal student loan typically increases by 0.60%. However, when you apply for your Academic Lending Services Federal Consolidation Loan at least 20 days before the end of your grace period, your new consolidation loan will incorporate the discounted "in-grace" interest rate. Your application must be received prior to the first grace end date on the loans being consolidated. To enable you to take full advantage of your grace period benefits and still receive the lower grace rate, Academic Lending Services will then process your application so that funding of your loan will occur near the end of your grace period.

What are the eligibility requirements?
To be eligible for a consolidation loan with us, you must be in your loan grace period or in repayment at the time the consolidation loan is funded, you must have at least $10,000 in eligible outstanding loans and you must not be currently in default on a Federal student loan. There are some program exceptions to this minimum balance. For details, please call and speak to a Loan Consultant.

• Eligible Federal student loans include:
• Federal Stafford Loans, unsubsidized and subsidized [including Guaranteed Student Loans (GSL)]
• Direct Stafford Loans
• Federal Supplemental Loans for Students (formerly Auxiliary Loans to Assist Students/ALAS and Student PLUS Loans)
• Federal Perkins Loans, formerly National Defense/National Direct Student Loans (NDSL)
• Health Professions Student Loans, including Loans for Disadvantaged Students (HPSL)
• Federal Insured Student Loans (FISL)
• Federal PLUS (Parent) Loans
• Direct PLUS Loans
• Federal Consolidation Loans, unsubsidized and subsidized
• Direct Consolidation Loans, unsubsidized and subsidized
• Nursing Student Loans (NSL)

What is my interest rate?
The interest rate on your loan is set according to Federal law. It is determined by taking the weighted average interest rate of the loans selected for consolidation and rounding up to the nearest 0.125% (1/8%) or 8.25%, whichever rate is less. Your interest rate will not exceed 8.25% and it is fixed for the entire repayment term.

How long will it take for my loans to be consolidated?
It takes 30-60 days for us to receive payoff information from your lenders, review your application for completeness and disburse your new consolidation loan. You’ll receive a new Loan Consolidation Disclosure Statement and Repayment Schedule from your new loan servicer once your consolidation loan is complete.

What if I don’t know who currently holds my loans?
You can find lender names and addresses for each of your loans in your repayment information, you can go to nslds.gov, or simply call us and we can help access all your student loans.

Should I continue payment on the student loans that I am consolidating while my federal consolidation application is processing?
Yes. The processing of your new loan takes approximately three to four weeks. You should continue to make all of your regular scheduled payments on the loans that you have selected to consolidate until you receive your new Loan Consolidation Disclosure Statement and Repayment Schedule from your new servicer. If you fail to make payments, your loans may be treated as delinquent or in default, resulting in possible money penalties.

How can I apply?
You can apply online for a Federal Consolidation loan right now and reduce your monthly payments by up to 54%. To continue a previously started application, go to your account or call a ALS toll-free at the number listed above.