You have decided that you need to consolidate your loan and are all ready for the process. President Barack Obama’s most recent policy on the consolidation of loans as well as some cresses given for the same reason sounds profitable to you and the promise of a quality education is not too far without having to worry about monthly installments. You just have to get the consolidation process completed now.
Before you start the application, there are certain things which you must include in your checklist. We list some of those essential items below so that there are no breaks in your application process and you can get your loans consolidated without any trouble and unnecessary delays and drag.
Before you begin the application, you need to have all the documents pertaining to your previous loans, bills and account statements which will be needed at the time of filling up the form. Having a copy of the application form might give you a fair idea of what you need beforehand. There are questions on the application form that need to be answered and these questions are about the loans you want to consolidate. In order to answer those questions, you will need the following documents.
- Your bank statements
- Your most recent billing statement
- Your annual or quarterly statement. You may use whichever is most recent. However, some applications require information from both.
- Resources from the site of the service provider or the loan provider will also come in useful. In this case, there are dedicated officers who are committed to answering your queries in case you cannot find the answers to those questions online in the FAQ section
- The financial aid office at your school or college will also help you procure the documents related to your course of study. These documents are asked for proof that you will be taking a loan for education only.
- Another important point to remember is that you’ve got to be honest. In the application for loan consolidation, information is required about ALL the educational loans that you are currently indebted to. Do indicate all these loans along with those you wish to consolidate. The ones that have not included in the consolidation list may be used for determining the instalment amount under the Standard and Graduated Repayment Plans.
Methods of Application
You can either print the application and mail them through the postal system or e-sign the application and submit it online. If you were to take our advice, opt for the online system. The online system is a lot more efficient and quicker. Plus, in addition to it, you also receive a confirmation letter which you can keep as a proof of submission of the application.
Need for the PIN
If you intend to apply online, you will need a student PIN code. This can be obtained from the US Department of Education Federal Student Aid Web site. This PIN will be needed to e-sign and submit the application.
Before you are ready with the consolidation application, do select a repayment plan. Remember that the whole idea of applying for a consolidation is to come under the umbrella of a suitable repayment plan. Using the online calculator, you can come up with a repayment amount suited to your income amount and size of the family. There are four plans available for you to choose from.
Besides reading the overview of the package, it is important that you read the cover letter, instructions as well as any information relating to the plan from the site so that you know very clearly what you are getting into. With this step, you are consolidation-application ready!
