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Discussion in 'Financial Aid' started by Dallman, May 9, 2007.
How long does it take to do student loan consolidation?
Usually it will take them a week or two to process everything.
It depends on what you mean…if you mean how long does it take to apply for a student consolidation loan, then the answer is a few minutes. Some companies even have online applications with the ability to e-sign, so the process is even faster. Here is a list of the best student loan consolidation companies with online/e-sign.
Once you apply, the actual "consolidation" process takes 1 – 2 months. During this time the consolidation company is contacting your current loan holders to get your loans paid off so they can take them over...at least that's what they told me.
When you fill out a consolidation application we have to send what is called an lvc (loan verification certificate) to your current lenders. Federal law mandates they respond within 10 business days of receiving the lvc so they invariably put it in the mail on the tenth day. Some lenders are more cooperative than others. Schools will almost always fax them to us the same day they are received, most other lenders try to stall. Why? To give their sales department time to contact you and try to get you to consolidate with them. If all of your loans are with one lender and you are consolidating with them this step is eliminated. Once we have all of the necessary lvcs it is sent for funding which varies greatly by the lender. Our current lender averages about a week to fund, our last one took more like three weeks (which is why we switched). From there it usually takes 1-2 weeks to get your new payment information to you and your first payment is usually due in 30-60 days.
To be fair lvScRb23 I would bet anything you work for Student Lending Works, you should disclose that on your posts advising using them.
It depends how complicated and if there are any problems. I have consolidated a few times. Most only take weeks. But one took 9 mo!!!