Student Loan Consolidation Hot Topics

Everyone uses jargon in the line of work that they do. We all use terms and abbreviations which are completely unfamiliar to anyone outside that industry. In the loan consolidation industry there is a lot of jargon and I know it is very confusing. Below is a list of some of the commonly used terms in the loan consolidation industry.

An LVC is a Loan Verification Certificate, which is a document that must be completed by the holder(s) of each loan in order to be consolidated. This form lists the information on the loans and its pay-off quote.

MPN- MPN stands for Master Promissory Note. This is the legal document signed by the borrower when obtaining a loan. It lists the conditions under which the loan is made and the terms under which the borrower agrees to repay the loan.

ESIG- An Esig is an electronic signature. Basically, it’s an online consent and agreement that has the same validity as a written signature. You will hear this term often in the customer service area. We suggest the Esig option to borrowers who want to expedite their consolidation process.

ACH- The term ACH stands for Automatic Clearing House. This is when a borrower has their monthly payments automatically debited from a banking or savings account each month. Most of our consolidation borrowers prefer this method of payment because it avoids being late or missing a scheduled payment.

BENEFITS- Customers call in daily to the Student Loan Network asking what our “benefits” are if they consolidate with us. Basically, benefits are the discounts or incentives a company can give a borrower if they consolidate their loans with them.

APP- This word is commonly used by the customer service representatives and it is short for application.

PCON-Pcon in the loan consolidation industry is the slang that is used for a borrower who has already consolidated their student loans.

IA- IA is the status code in the National Student Loan Data Systems that means in attendance. You may hear a representative slip and ask if you are “IA” right now. Really what they are trying to ask is if you are enrolled in school or not.

If you find it hard to understand the loan consolidation jargon when you are speaking to a customer service representative make sure to communicate your confusion. Do not be ashamed that it is something you don’t understand and ask for their help. You would be suprised how quick a represenative at the Student Loan Network will explain the process in laymen’s terms.

The Student Loan Network: Stafford Federal Student Loans, Parent PLUS Loans, Student Loan Consolidation, Private Student Loans, Education Loans/College Loans

I received a question regarding re-consolidation from one of my readers (Thanks Heather!). The question was as follows - Once federal loans are consolidated at a set rate can they later be consolidated again with the same company or with a different company offering a lower interest rate?

For the most part, you can not re-consolidate your student loans with the same lender or a different lender - Federal guidelines. However, there are a few circumstances that will allow borrowers to add a previous consolidation to a new consolidation:

- If you take out new federal loans after your consolidation is complete, once you are no longer enrolled more than half time, you can consolidate the older consolidation and new federal loans with which ever lender you choose.

- When your original consolidation was processed, if any loans were not included with the original consolidation, you can combine the missing loan with the new consolidation with which ever lender you choose. However, this normally doesn’t occur that frequently - most consolidations will capture all outstanding student loans.

As for the lower interest rate, under FFELP (Federal Family Education Loan Program) guidelines, all consolidation lenders must offer the same federal interest rate - no less no more. What you’ll see different with each lender are their borrower benefits packages. These are discounts that are applied to the consolidation loan for certain actions such as automatic checking account withdrawal, and timely payments. Some lenders advertise what the interest rate would be AFTER discounts are applied - So be careful because not all borrowers qualify for every discount.

For all those interested in re-consolidation, keep your eyes pealed and stay tuned in the months to come. There have been rumors of legislative changes that could re-instate the ability to re-consolidate. Or if you have questions about your student loans and whether or not you qualify for consolidation, give us a call toll-free at (877) 328-1565.

Thanks for the question Heather - and take care!

StudentLoanConsolidator.com
StudentATM.com
StudentLoanNetwork.com
Gradloans.com
ActEducationLoans.com
FinancialAidPodcast.com

While we at the Student Loan Network are very student-centric, always advocating for higher education, smart student financing, and consolidation - many customers ask what sort of advice can we provide once school is over? You’ve completed your degree program, consolidated your loans - now its time to find a job! It was a natural move for the Student Loan Network to put together yet another useful resource for students and young professionals: The Edvisors Education Job Center

The Edvisors Education Job Center has thousands of job postings, resume and portfolio submission options, location and profession based stats, advanced degree program listings, and so much more. Vist The Edvisors Education Job Center!

It has always been our goal to provide useful resources to students and parents in higher education - now we can help them put their education to use.

StudentLoanConsolidator.com
StudentATM.com
StudentLoanNetwork.com
Gradloans.com
ActEducationLoans.com
FinancialAidPodcast.com