What is the consolidation process?
When a borrower consolidates loans, the lender pays off the original loans and originates a new loan for the total amount of the loan(s) consolidated. After the lender reviews the application, a credit check will be performed. If the borrower has an adverse credit history, the lender will send out a letter outlining your options. The borrower has a right to appeal the decision, document extenuating circumstances, or obtain an eligible endorser. If the application is approved, the lender will then send a verification certificate to the loan holder requesting information about the loans included on the application. After the loans are verified, a loan summary will be mailed to the borrower and a check will be mailed to the loan holder to pay off the loans. A consolidation account is set up after the loans have been paid off. Borrowers will receive important information regarding loan status and repayment information. Usually the first payment is due within 60 days of the first disburseme
You are only a payment or two behind and don’t want to affect your credit then possibly consolidation is the program for you. The benefits of the consolidation program are a lowered monthly payment, lower interest rates, stopped late charges and waived over the limit fees is all part of the negotiations for debt consolidation. Keep in mind that if you miss a payment you need to get caught up within 20 days. If you miss more than one payment you will be defaulted from the consolidation program and will not be able to participate in another consolidation program for two years. Do you have a good credit history? If yes, then you should be aware that your credit report may state that you are working through a debt management program. We can’t guarantee how future creditors will interpret this information, but we believe that it shows you are trying to get help. Your credit report probably states that you’ve been carrying balances, made late payments in the past 7 years, or even missed paym
