Federal Loan Consolidation
Locate your Federal loans here
You can either call or go online
By telephone – Federal Student Information Center: 800-433-3243
Online – https://www.nslds.ed.gov/nslds/nslds_SA/
Create an FSA ID here
Learn more about loan consolidation or begin an application
Calculate monthly consolidation payments according to different repayment plans
Learn what a ‘weighted interest rate’ is and how it is calculated http://loanconsolidation.ed.gov/help/rate.html
Managing your monthly payments or consolidating
If you have questions about a Direct Loan Consolidation you may call a representative at Second Alliance at 800-830-7570 or the Loan Consolidation Information Call Center at 800-557-7392
Understanding Income Driven Repayment options
Perkins Loan Rehabilitation
The U.S. Department of Education requires that all Perkins lenders establish a loan rehabilitation program for borrowers with defaulted Perkins Loans. The Perkins Loan Rehabilitation program allows defaulted borrowers to regain many important benefits of the promissory note, which are lost if their loan defaults.
- The borrower must request Perkins Loan rehabilitation from the school.
- The borrower must negotiate a monthly payment amount with the school and make nine (9) consecutive, on-time monthly payments (for the agreed-upon amount).
- The loan is not considered rehabilitated until the receipt of the ninth (9th) consecutive, on-time monthly payment.
- To meet the criteria of on-time payments, your payment must be received no more than 20 days prior or 20 days after your payment due date.
- Any missed payment during the nine (9) month rehabilitation period will immediately cancel the rehabilitation agreement.
- Payments may not be made in advance for future monthly payments.
- One payment must be made each of the nine (9) consecutive months in the rehabilitation period. Multiple payments received in one month will count as a single rehabilitation payment for the month.
Benefits for a rehabilitated borrower include:
- The Perkins Loan will be returned to a current status and will no longer be considered delinquent.
- All historical information regarding the defaulted loan will be removed from credit bureau files.
- The borrower will receive a maximum of 10 years (including the rehabilitation period) to complete repayment of the debt.
- The rights and responsibilities of the existing promissory note will be reinstated.
- Eligibility for Title IV student financial assistance will be reinstated.
- Transcripts may again become available to the student.
While a borrower can attempt to rehabilitate a defaulted loan more than once, a borrower may receive only one rehabilitation per loan. A subsequent default on a successfully rehabilitated loan cannot be “cured” by a second rehabilitation period.
Borrowers interested in Rehabilitating their Federal Perkins Loan contact us by (Request to communicate by email authentication required) or by calling 800-830-7570
If you are totally and permanently disabled, you may qualify for a total and permanent disability (TPD) discharge of your federal student loans or TEACH Grant service obligation. If you receive a TPD discharge, you will no longer be required to repay your loans or complete your TEACH Grant service obligation.
Federal Perkins Cancellation
There are many provisions for cancellation on Federal Perkins Loans. If you preformed eligible service prior to default you may be eligible for cancellation during that period.
Cancellation Rates for Military, Teachers/Public Servants
With the exception of the early childhood education and volunteer service cancellations, the cancellation rate per completed year of qualifying full-time service is
- First and second years: 15% of the original principal loan amount, plus the interest that accrued during the year
- Third and fourth years: 20% of the original principal loan amount, plus the interest that accrued during the year
- Fifth year: 30% of the original principal loan amount, plus any interest that accrued during the year
A “year of service” consists of 12 consecutive months of service, except for teaching service, where the borrower must teach full-time for a full academic year or its equivalent. For cancellation definitions visit https://ifap.ed.gov/fsahandbook/attachments/1516FSAHbkVol6Ch4.pdf beginning on page 23.
To apply for cancellation or to obtain cancellation forms visit your loan servicer or contact us at 800-830-7570
Servicer forms available online:
University Accounting Service
Federal Perkins Total and Permanent Disability
If you are totally and permanently disabled, you may qualify for a total and permanent disability (TPD) discharge of your federal student loans or TEACH Grant service obligation. If you receive a TPD discharge, you will no longer be required to repay your loans or complete your TEACH Grant service obligation. You can start an application for discharge here:
https://disabilitydischarge.com or by calling us at 800-830-7570.