Frequently Asked Questions

Below are answers to some commonly asked questions about Federal student loan consolidation. If you do not see your question answered below, please feel free to contact us at 1-888-285-2960 or by email at info@bluelabelfinancial.com

General Questions

Applying

Repayment

General Questions

Am I eligible for Federal student loan consolidation?

If your total student loan debt is at least $7,500 and you're in the repayment or grace period, you may be eligible for Federal loan consolidation.

Back to Top

Which loans can I include?

  • Loans that are eligible for Federal loan consolidation include:
  • Federal Subsidized and Unsubsidized Stafford Loans
  • Federal Direct Loans (William D. Ford Program)
  • Federal SLS Loans
  • Perkins Loans
  • Federally Insured Student Loans (FISL)
  • Health Professional Student Loans (HPSL)
  • Nursing Loans
  • PLUS Loans (For Parents)

Back to Top

Will I be able to keep my deferments if I consolidate?

Yes. When you consolidate your loans, you will retain your core deferments such as in-school, graduate fellowship, rehabilitation training, economic hardship, and unemployment deferment.

Back to Top

Can I consolidate my loans with my spouse's loans?

No. As of July 1, 2006, Federal law no longer allows joint consolidation with your spouse.

Back to Top

Am I required to consolidate all of my eligible Federal student loans?

No. We only require that you consolidate a minimum of $7,500 in eligible student loans. You can choose which loans you wish to consolidate when you finalize your loan.

Back to Top

Can I add loans to my consolidation loan after it has been issued?

Yes, you have 180 days after your Federal Consolidation Loan is issued to add eligible loans.

Back to Top

Where and to whom will I send my payments?

Once your Federal Consolidation Loan is approved, you will receive a Disclosure Statement and Repayment Schedule from your new servicer. Your statement will include the contact information of the servicer that will handle your payments. If you have any questions about beginning your payments, you should contact your servicer.

Back to Top

Applying

Does it cost anything to apply?

Applying for a Blue Label Financial Federal Consolidation Loan is free of charge - there are no application, origination, or processing fees.

Back to Top

How long will it take to process my consolidation loan?

Your loan will be processed within 45 days of when we receive your completed application, unless otherwise directed by you.

Back to Top

How will I know when it has been processed?

Once your Blue Label Financial Federal Consolidation Loan is approved, we will send you an email. You'll need to open this email and follow the instructions to finalize our loan. If you do not receive this email within two days, please contact a Blue Label Financial Education Loan Consolidation specialist at 1-888-285-2960. Following, your new servicer will send you a Disclosure Statement and Repayment Schedule, which will show the total amount of your new consolidation loan, the interest rate, the estimated interest costs over the life of your loan, and a repayment schedule.

Back to Top

When should I consolidate my student loans?

If you are in your grace period, you should contact a lender at least two months before the end of your grace period in order to lock in the lowest possible rate. If you have already entered your repayment period, the sooner you consolidate, the sooner you can lower your monthly payments.

Back to Top

Do I have to keep making payments to my current lenders after applying for consolidation?

Yes, you must continue to make all of your regularly scheduled payments until you receive your Federal Consolidation Loan Disclosure Statement and Repayment Schedule. This information will be sent by your new loan servicer.

Back to Top

Repayment

Can I change my repayment plan option without charge?

Yes, you can change from one repayment plan option to another once a year without penalty or fee. Click here to learn more about your repayment options.

Back to Top

Are there prepayment penalties?

No, there are absolutely no penalty charges for prepayment. And you can save hundreds or even thousands of dollars over the course of your loan by prepaying and applying even small amounts to the principal every month. By paying more than the given amount every month, you will also shorten the life of the loan.

Back to Top

How long will I have to pay back my loan?

By consolidating your eligible student loans, you can extend your repayment term up to 30 years. The maximum repayment term is based on your total student loan debt, which is calculated from the eligible loans you are consolidating as well as other eligible loans that you elect not to consolidate. Click here to see what the repayment terms are.

Back to Top

What will my interest rate be?

The fixed interest rate for your Blue Label Financial Federal Consolidation Loan is set according to Federal law. It will be the weighted average interest rate of the loans you consolidate, rounded up to the nearest 1/8th of 1%, or 8.25% APR - whichever is less. Your interest rate will never increase, but you can reduce it with special Blue Label Financial money-saving benefits. We will automatically reduce your interest rate 1/4% when you elect to make your payments through automatic withdrawal. In addition, we will reduce your rate an additional 1% on loans greater than $10,000 when we receive your first 36 consecutive on-time loan payments. You must remain current for the remaining term of the loan to keep this reduction in effect.

Back to Top

Any other questions? Call 1-888-285-2960 toll-free and a Blue Label Financial Education Loan Consolidation specialist will be happy to answer them for you.