What happens once loans are consolidated?

[tyman123]

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So I had Great Lakes for loans throughout medical school. Applied for consolidation. Received a letter from U.S Department of Education that loans will be consolidated in 15 days (I chose IBR). It gave me an estimated monthly payment.

What now? Who do I make payments to? Will I hear from a new provider? It's already December 9th, and I'll have to start making payments in January.

What about Great Lakes?

 

[Smurfette]

If you have to start payments, you should receive something from Great Lakes on this telling you the date your first payment is due. I am guessing you will get this after the consolidation is complete in 15 days. Usually lenders will work with you after something major changed with your loans (like consolidation) so you have enough time to pay the loan without being late and set up online payments and stuff; i.e. you will prob get a date for your first payment several weeks out. You WILL get info by mail and possibly by email about this.

If you are already paying back loans, pay them as usual until you get the new payment info to avoid any late payments.

 

[Bacchus]

I got a whole new servicer: Sallie Mae. I just applied to MyFedLoan to track my qualifying PSLF payments and it sounds like I'll be getting them as a servicer.

 

[Trogghunter]

...and buy some subprime student loan exchanges

 

[Igor4sugry]

So I had Great Lakes for loans throughout medical school. Applied for consolidation. Received a letter from U.S Department of Education that loans will be consolidated in 15 days (I chose IBR). It gave me an estimated monthly payment.

What now? Who do I make payments to? Will I hear from a new provider? It's already December 9th, and I'll have to start making payments in January.

What about Great Lakes?

Get ready to send in IBR application. Even though you chose IBR they won't actually sign you up for it and you will likely be placed into standard repayment. You will then submit IBR application and hope it gets there within the 1mo you have to get this processsed. Sallie Mae is very easy because they have on-line document updating feature. The other ones I would fax the application and mail it in. Also get ready to be bounced around various servicers for no apparent reason. Even though you consolidated with Great Lakes it doesn't mean they will remain your servicer.

 

[tyman123]

I already submitted an IBR application to Great Lakes 2 months ago. I guess that doesn't apply if I get Sallie Mae or somebody new.
Also WHEN do I apply for Public Service Loan Forgiveness. I haven't done that yet.