A Private Loan Consolidation scheme has a certain procedure, presenting a step by step guide through the entire process and clarifying the common queries that arise in the process.

• What is meant by Consolidating a Private Student Loan?
  Students, Graduates and their parents are given an opportunity to reduce the complexities of handling a number of eligible private loans taken by them for educational purposes. Consolidation is a process by which the entire liability is reduced to one loan liability/payment accountable to a single lender at a lowest interest rate.
• Who are eligible for a Private Loan Consolidation?
  You should either be a student, graduate or their parent having one or more Private Loans not less than $7,500. You (including cosigner if any) are expected to have two years employment, verifiable residence and satisfactory credit worthiness, with a monthly income of not less than $1,500.
• When can I proceed consolidating my Student Loan?
  Immediately after all the eligible Private Loans opted for consolidation are disbursed you can consolidate.
• What are the Eligible Loans for Consolidation?
  Any alternative source of loan or a Private Loan incurred for the purpose of attending and studying in a qualified higher education program.
• Is Consolidation allowed even if I have a Single Private Loan?
  You are allowed to consolidate even a Single Private Loan to make use of the favorable interest rates offered under consolidation.
• Can both Private and Federal Loan be consolidated together?
  Federal Loan contains more favorable terms and advantages that are not available to Private Loan holder hence consolidation is not permitted. Both these loans can be consolidated separately.
• How is the Interest Rate determined?
  The rate applicable for a Private Consolidation is based on a prime rate namely the LIBOR (London Interbank Offered Rate) index to which a percentage of margin is added to arrive at the consolidation loan rate. After the first year a long term margin is added to the index rate to arrive at the loan rate. Discounts are offered for a direct payment debit from the bank account. These rates are generally fixed but are also subject to quarterly \ half yearly adjustments.
• What is the Repayment term in consolidating Student Loan privately?
  A maximum of 30 year period is allowed depending on the outstanding loan balance.
• What are different Repayment options available for parents/students?
  Payment of both principal and interest is one option and payment of interest portion alone for 24 installments and later converting into a principal plus interest is another option available.
• Is there any fee for Consolidation?
  No there is no fee for consolidation.