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Federal Consolidation Loans
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 NC Advantage (Borrower
Benefits)
See how much and how you save with our loans. |
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The interest rate on your Federal Consolidation Loan is 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% , or
8.25% whichever is less. Any portion of the loan attributable to
HEAL will have a variable interest rate that adjusts each July 1st.
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[Save
Money on Your Consolidation Loan]
[Complete
Loan Application online]
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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
find it difficult to make the required monthly payments.
To consider other payment solutions, use our Repayment
Wizard.
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How can a consolidation loan help you?
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- Reduces the number of loan payments you must make each
month.
- Lowers your total monthly education loan payment amount.
- Extends your repayment period.
- Can help you avoid loan default and/or poor credit
rating.
- Can help you return a defaulted loan to good standing.
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| Loan consolidation
isn't for everyone. Remember, even though you will have lower
monthly payments, an extended repayment period will increase the
total interest charges over the life of the loan. You can, however,
make early payments on your loan at any time without penalty, which
can save you money. |
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Why borrow from CFI?
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- No origination fee or service charges.
- For balances under $60,000, interest rate reduction of .30% if you
make monthly payments by automatic draft** and elect to receive electronic
statements. For balances of $60,000 and above, interest rate reduction of .40%
if you make monthly payments by automatic draft** and elect to receive electronic statements.
Sign up
now.
**The automatic draft and electronic statement benefit will be cancelled in the event a total of 3 automatic drafts are rejected for insufficient funds.
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Determination of the amount and availability of benefits on new
loans is generally made on an annual basis and benefits are subject
to modification as a result of changes in federal and state law or
market conditions. Benefits on loans, once received by a borrower,
remain in effect for the life of those loans as long as the borrower
continues to meet the associated eligibility requirements. If you
have loans from College Foundation made prior to July 1, 2006, call
us toll-free at 866-866-CFNC to review benefits in effect for your
loans. |
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What are the eligibility requirements?
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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.
To borrow a Consolidation Loan from College Foundation, Inc. (CFI), the prospective borrower must have a North Carolina
Connection as well as meet federal loan requirements. The required connection is established by having at least one FFELP Loan outstanding with CFI.
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What types of loans can be consolidated?
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- 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
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| * Federal
Consolidation Loans can be included only if you have at least one
other eligible loan made before or after the existing consolidation
loan that will be consolidated. |
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| Note: 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. |
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How do I apply?
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- Apply online.
- Contact CFI to request a consolidation loan application,
toll-free 866-866-CFNC.
- If you have questions about repayment options instead of a
Consolidation loan, contact the Repayment Call Center (toll-free
800-722-2838) or use our Repayment
Wizard.
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What is CFI's Nondiscriminatory Policy?
All student financial assistance is awarded on a nondiscriminatory
basis without regard to race, color, religion, national origin, sex,
marital status, disability, sexual orientation, veteran status, age
(with the exception that borrowers must be at least 17 to enter into
loan contracts under North Carolina law), or any other protected
characteristics established by law.
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