Private Loan Consolidation

Frequently Asked Questions

What are the benefits of a Private Consolidation Loan?
Who is the lender of my CFS Private Consolidation Loan?
What are the eligibility requirements?
Are there any application fees or credit requirements to consolidate?
How much can I borrow?
What loans qualify for consolidation?
Is there a limit to the number of loans I can consolidate?
What is my interest rate?
What are my repayment options?
How long is the repayment term?
When does repayment begin?
Can I choose my payment due date or change it?
Can I make more than the minimum loan payment each month?
Are there any fees or penalties associated with early repayment?
What are my forbearance options?
How long will it take to consolidate my loans?
How can I apply?

What are the benefits of a Private Consolidation Loan?

Managing from $7,500 to $125,000 in eligible privately backed student loans is a lot easier through a CFS Private Consolidation Loan. You can enjoy more cash on hand and significantly lower your monthly payment by lengthening the term of your loans. Plus, you'll reduce several monthly loan payments to just one, saving you time and effort.

Who is the lender of my CFS Private Consolidation Loan?

The CFS Private Consolidation Loan is made by Wachovia Bank, an Equal Opportunity Lender.

What are the eligibility requirements of the program?

You must consolidate at least $7,500 in eligible private student loans and must be in active repayment on your loans. Additionally, you or (when applicable) your co-borrower must meet certain immigration status requirements, possess a good credit history and have the ability to repay the loan.

Are there any fees or credit requirements to consolidate?

A low Loan Guarantee Fee will be calculated on your new loan based on your credit worthiness. Your Loan Guarantee Fee will be 1% or 3% of the total amount of the loans you are consolidating. This Fee will be added to your loan balance so that you avoid any out-of-pocket expenses. A credit check is required.

See payment disclosures below.

How much can I borrow?

You can borrow a minimum of $7,500 up to a maximum of $125,000.

What loans qualify for consolidation?

An eligible private educational student loan is:

Originally issued for the purpose of paying educational expenses under the U.S. Department of Education Title IV program OR in conjunction with obtaining certification to practice in a professional field
Used to pay for educational expenses*
Reported to a credit reporting agency as a student trade or designated as used for education
Currently in repayment
Not more than 60 days delinquent

*Note: Credit card debt, home equity lines of credit, and loans used exclusively for computer purchases and/or travel and unsecured lines of credit accumulated for educational expenses cannot be included.

Is there a limit to the number of loans I can consolidate?

No, there is no limit to the number of eligible loans you can consolidate, as long as loans total between $7,500 and $125,000.

What is the Interest Rate and Guarantee Fee?

The interest rate is Prime + 1% using the Prime Rate printed in The Wall Street Journal on the last business day of the preceding month. As of May 31, 2005, the Prime Rate was 6.00%. Your interest rate varies and may increase or decrease after your loan is consolidated. For example, if you had a consolidation loan of $30,000 and a term of 20 years, you would make 240 payments of $234.94 with an interest rate of 7.00% and an Annual Percentage Rate (APR) of 7.13% assuming the guaranty fee of 1%. If the guarantee fee was 3% on the same loan, you would make 240 payments of $239.78 and your APR would be 7.40%. Since your loan amount and term may be different, please ask us for details.

See payment disclosures below.

What are my repayment options?

Depending upon the amount of your loan, you can stretch your repayment term up to 30 years. Lengthening the term of your loan will significantly reduce your monthly payment, although you should note that your extended repayment term will increase the total amount of interest you pay on your loan. Since there are no prepayment penalties with CFS, you can reduce your interest costs by increasing the amount you pay each month or by paying off your loan early.

How long is the repayment term?

Here are the repayment terms for private loans:

Loan Balance	Fees	Repayment Terms	Interest Rate
$7,500 to $39,999	Guarantee Fee: 1% or 3% of the principal loan amount, determined by creditworthiness	Up to 20 years	Monthly variable on Prime plus 1%
$40,000 to $60,000	Gaurantee Fee: 1% or 3% of the principal loan amount, determined by creditworthiness	Up to 25 years	Monthly variable on Prime plus 1%
Greater than $60,000	Only offered with the 1% Guarantee Fee	Up to 30 years	Monthly variable on Prime plus 1%

Example Repayment Calculations — 1% Guarantee Fee
Interest Rate at Prime +1% (as of 5/31/05, the Prime Rate was 6.00%, and your interest rate would be 7.00%) with a Guarantee Fee of 1%

LOAN AMOUNT / TERM	$10,000, 10 Years	$50,000, 25 Years	$100,000, 30 Years
Guarantee Fee Amount	$101.01	$505.05	$1,010.10
APR	5.97%	5.85%	5.84%
Amount Financed⁽¹⁾	$10,101.01	$50,505.05	$101,010.10
Monthly Principal and Interest Payment	$110.88	$317.73	$589.47
Finance Charge⁽²⁾	$3,305.36	$45,319.15	$112,208.31
Number of Payments	120	300	360

(1) The amount of credit provided to you or on your behalf.
(2) The estimated dollar amount the credit will cost you.

The Prime Rate used is the Rate published in The Wall Street Journal printed on the last business day of the preceding month. The rate charged will never be more than te maximum rate allowed under Deleware law. Changes in the interest rate may cause the repayment period to be extended or shortened.

All repayment calculations on this form are examples only. Your actual repayment terms and APR will be provided verbally prior to loan funding.

Example Repayment Calculations — 3% Guarantee Fee
Interest Rate at Prime +1% (as of 5/31/05, the Prime Rate was 6.00%, and your interest rate would be 7.00%) with a Guarantee Fee of 3%

LOAN AMOUNT / TERM	$10,000, 10 Years	$50,000, 25 Years
Guarantee Fee Amount	$309.28	$1,546.39
APR	7.69%	7.34%
Amount Financed⁽¹⁾	$10,309.28	$51,546.39
Monthly Principal and Interest Payment	$119.70	$364.32
Finance Charge⁽²⁾	$4,363.94	$59,295.75
Number of Payments	120	300

(1) The amount of credit provided to you or on your behalf.
(2) The estimated dollar amount the credit will cost you.

All repayment calculations on this form are examples only. Your actual repayment terms and APR will be provided verbally prior to loan funding.

When does repayment begin?

You are required to begin repayment on your Private Consolidation Loan within 60 days of its funding date. Once your loan has been funded, you will receive a Loan Consolidation Disclosure Statement and Repayment Schedule for your new loan.

Can I choose my payment due date or change it?

Once the payment due date is established, the date cannot be changed. However, you have the option to make a payment at any time before the due date and there is no late charge if we receive the payment within 14 days after the due date. After 15 days, a late charge is assessed.

Can I make more than the minimum loan payment each month?

You may prepay all or any portion of your loan at any time without penalty. Prepayment is encouraged as it can significantly reduce the total amount of interest paid over the life of the loan.

Are there any fees or penalties associated with early repayment?

No. You can repay your consolidation loan early without a penalty.

What are my forbearance options?

If you are unable to make your scheduled loan payments due to a financial hardship, your servicer may grant a hardship forbearance to you for up to six (6) months. The total period of the hardship forbearance for the life of your loan may not exceed six (6) months regardless of the number of forbearances granted. During this forbearance period all principal and interest payments will be suspended; however, interest will continue to accrue and will be added to your loan amount at the end of the forbearance period. Additionally, forbearance may only be granted after a full year of full principal and interest payments on your new loan have been completed. Please note that your servicer is generally not required to grant a forbearance and may require you to provide reasons for the request and other information.

How long will it take to consolidate my loans?

It takes four to six weeks for your new loan to be processed once we receive your completed application. This time frame is dependent on the response from your current lender(s).

How can I apply?

You can apply online for a Private Consolidation Loan right now and lower your monthly payments. Or, call a CFS Loan Consultant toll-free at 1.866.857.1727.