Whether you're still in your grace period or actively repaying your student debt, there are plenty of reasons to take advantage of a Federal Consolidation Loan Program from CFS. It all begins with the added financial flexibility you'll enjoy by lowering your monthly payments. But CFS offers you even more than that:
It costs you nothing, no service charge or origination fees of any kind, to set up your loan. Plus, there is no credit check.
You can reduce your monthly student loan payment up to 51%. One of our Loan Consultants can estimate your monthly payment reduction over the phone. Simply have your loan information handy and call a CFS Loan Consultant toll-free at the number on the main page. Your actual rate and payment can be different since it is based on the actual rate and balances that your existing lenders/servicers provide us.
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.
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 Collegiate Funding 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, Collegiate Funding Services will then process your application so that funding of your loan will occur near the end of your grace period.
With our Borrower Benefits Program, you may reduce the amount of interest paid over the life of your loan by making consecutive on-time payments. You must continue to make on-time payments to qualify.1
You can also get an immediate discount for taking advantage of our Automatic Payment option. With this service, you'll enjoy the convenience of having your payments automatically withdrawn from your checking or savings accounts and take advantage of an extra interest rate reduction too! Your rate will be reduced for as long as you continue to have your payments automatically withdrawn.1
You may choose one of several repayment options for your Federal Consolidation loan.
Level Repayment Plan
A level repayment plan may be best suited for you if you wish to take control of your loan payments with a lower fixed monthly payment.
Two-year Graduated Repayment Plan
This plan may be best suited for you if your current earnings are low but are expected to increase in the near term.
Four-year Graduated Repayment Plan
This plan may be best suited for you if your current earnings are low but are expected to go up in a few years.
Income-sensitive Repayment Plan
This plan may be best suited for you if you are experiencing extreme financial problems and may be in danger of defaulting on your loans. With this plan, your payments are based upon your income and are adjusted annually.
Note: It is the borrower's responsibility to provide adequate documentation of their income. Information provided should be sufficient for the lender to make a determination as to what the monthly loan payment amount will be.
Extended Repayment Term
A new borrower on or after October 7, 1998, with an outstanding balance of principal and interest in Federal student loans totalling in excess of $30,000 may repay over a 25-year period on a level or graduated payment plan. Under the other repayment options available in the consolidation program, you must have at least $40,000 in debt to qualify for a 25-year repayment period. If you have debt in excess of $60,000 and wish to repay over a 30-year period, you should select one of the other repayment options.
Yes, all you would need to do is contact your loan servicer to switch plans. There is no extra cost or penalty to switch plans, and you can do so once a year.
Depending upon the amount of your consolidation loan, and other unpaid education loans, you can stretch your repayment term by up to 30 years.2 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. And 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 — without a penalty or fee.
1. You are eligible for our Federal Consolidation Loan as long as you, at the time of funding: (1) are in your loan grace period or have entered repayment on each loan chosen for consolidation; and (2) consolidate eligible federal student loan debt meeting CFS’ minimum balance requirement. Other criteria also apply. Please call for details on all criteria. CFS reserves the right to modify, extend or discontinue this program at any time without notice. Changes to this program, if any, will not affect loans that previously qualified for these or any other benefits as long as they are held by a participating lender. Benefits will not transfer if the loan is sold or consolidated. Borrower benefits will not lower your monthly payment. Interest rate reduction benefits will reduce the amount of interest that accrues. Therefore, a larger percentage of each payment will be applied to the principle balance, thereby decreasing the repayment term. Principle reduction benefits will reduce the principle balance thereby decreasing the amount of interest paid over the life of the loan. The Principle Reduction benefit is based on the principle balance at the time the benefit is earned. Cash rebate borrower benefits are based on the consolidated loan balance and will not affect the monthly payment or the amount of interest paid over the life of the loan. All loan rate reductions and other borrower benefits terminate upon either a loan default or failure to continue to meet a borrower benefit qualification. Borrower benefits apply (1) after a qualifying period expires and as long as monthly payments are received within five (5) days of the payment due date and/or (2) upon initial receipt of completed Automatic Debit Authorization form and for as long as you continue to have your payments automatically withdrawn. If any automatic payment is not made due to insufficient funds in your account or for any other reason, the automatic payment reduction no longer applies and you will be charged the non-discounted rate. All payments must be received by the Payment Due Date to be considered "on-time". Please call for details on our current benefit offering(s).
2. Based on total outstanding principal amount of your educational debt, including federal loans you choose not to consolidate and/or private educational loans. Default loans may not be considered. All other unpaid education loans may not exceed the amout of loans being consolidated.