Federal Consolidation Loan Program

The Federal Consolidation Loan Program was established to help people who borrowed money from multiple lenders or had to borrow a large amount to finance their college education and then have difficulty making the required monthly payments.

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Apply for a Consolidation Loan.

Eligibility Requirements

For a consolidation loan with College Foundation, Inc., you must meet the following eligibility requirements:

• Have a total outstanding balance of at least $500 on the loans you wish to consolidate.
• Be in grace or repayment status (including loans in deferment or forbearance) at the time of application for the loans you wish to consolidate.
• Have made satisfactory repayment arrangements with the holder of your loans or agree to repay the consolidation loan under an income-sensitive repayment plan if your loans are in a default status.
• Not be subject to a judgment issued by a court, unless the judgment has been vacated.
• Not be subject to an order for wage garnishment unless the order has been lifted.
• Not have another consolidation loan application pending with another lender.

Note: If you consolidate during your grace period, the remainder of your grace period will be cancelled as of the date the consolidation loan is made.

In addition to meeting federal requirements for a Consolidation Loan, you also must have a North Carolina Connection to borrow from College Foundation, Inc. (CFI). Your connection must be through one of the following means:

• You are a resident of North Carolina; or
• You have one or more Federal Family Education Loans guaranteed by the North Carolina State Education Assistance Authority; or
• You are a current or former participant or beneficiary in the North Carolina College Savings and Investment Program (provided that, the savings account was not closed due to a rollover to another qualified tuition program); or
• You attended a North Carolina college or university eligible to participate in the Federal Family Education Loan Program.

Loans That Can Be Consolidated

• Subsidized Federal Stafford loans
• Unsubsidized and nonsubsidized Federal Stafford loans
• Federal Supplemental Loans for Students (SLS)
• Federal Perkins loans (NDSL)
• Health Professions Student Loans (HPSL), including Loans for Disadvantaged Students
• Health Education Assistance Loans (HEAL)
• Federally Insured Student Loans (FISL)
• Federal PLUS (parent and graduate/professional) Loans
• Federal Consolidation Loans**
• Loans made under the Federal Nursing Student Loan Program (NSLP)
• Loans made under the Federal Direct Loan Program

REVIEW ALL YOUR STUDENT LOANS

Fees

• No origination fee.
• No guarantee fee.
• No repayment fee.

Interest Rate

• The interest rate on your Federal Consolidation Loan will be a fixed rate based on the weighted average of the statutory interest rates of the loans being consolidated (excluding Health Education Assistance Loans [HEAL]), rounded up to the nearest 1/8th percent, or 8.25 percent, whichever is less.
• For any portion of the loan attributable to HEAL, the interest rate is variable and adjusts each July 1.
• In determining the weighted average of the statutory interest rates on the CFI loans being consolidated, CFI uses the rates in effect for each underlying loan at the time your signed Consolidation Loan application is received. If loans from another lender are also to be included in the new loan, CFI uses the rates reported by that loan holder.

Repayment

• Your first payment will be due within 60 days after your consolidation loan is made.
• You must continue to make your regularly scheduled loan payments to your original lenders until your consolidation loan has been processed. The consolidation loan processing period may be up to 45 days.
• The following list shows the maximum repayment period available based on the combined total of your consolidation loan and other outstanding education loans (public or private higher education loan programs; personal loans cannot be considered):

• You may select one of the following repayment options for your consolidation loan:

• Standard Repayment Plan - You pay the same monthly payment amount (including principal and interest) throughout the repayment period.
• Graduated Repayment Plan - You start with a lower monthly payment at the beginning of your repayment period, then gradually increase over the course of the repayment period.
• Income-Sensitive Repayment Plan - You make a monthly payment based on a percentage of your monthly gross income.
• Extended Repayment Plan - You extend payments for a lengthened repayment term of up to 25 years. (Available only to borrowers who received their first loan on or after October 7, 1998, and have more than $30,000 in outstanding principal and interest through FFELP.)

Important Consideration Before Consolidation

Consolidation may also limit your eligibility for certain deferments and interest subsidy benefits. Generally, you should consider a loan consolidation only on a large education loan debt and if you are having serious difficulty making your payments.

Any benefits for which you have previously qualified under the NC Advantage Program will be forfeited upon consolidation of the applicable loans. You will become eligible to qualify for the benefits available to CFI Consolidation borrowers - after 24 consecutive on-time payments, your interest rate is reduced 1/2 percent; after 36, the reduction becomes 1 percent; and after 48, the reduction becomes 2 percent. Also, if you arrange automatic debit payments, CFI offers you an additional 1/4 percent interest rate reduction.

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Apply for a consolidation loan.