Quick FAQ - Consolidate Student Loans

If I consolidate student loans will it impact my ability to defer my loan?

No. Standard deferment and forbearance options such as in school-deferment, economic hardship deferments, and unemployment deferments are core attributes of your student loan and are not lost when you consolidate student loans.

Why is the monthly payment so much less when I consolidate student loans?

There are two reasons why monthly payments can be greatly reduced after consolidating student loans. The first is that variable rate loans are replaced by a single fixed interest loan. The other reason consolidating student loans can have such a big impact on reducing the monthly payment is that the repayment period can be extended past the standard 10 year repayment term if you choose this option.

Are there any downsides to consider when I consolidate student loans?

Should you choose to extend the repayment period beyond 10 years, you will pay more in interest over the lifetime of the student loan. For many borrowers, it's more beneficial to pay more in interest over a lifetime than struggle with high monthly payments.

Are there penalties for paying off the loan early after I consolidate student loans?

This depends on the lender. ScholarPoint does not add any penalties or fees should you choose a longer repayment term and then decide to repay the student loan early.

Is a credit check required when I consolidate student loans?

Student loans are relatively low risk because they are backed by the government and cannot be written off in bankruptcy. Therefore, most lenders offering student loan consolidation including ScholarPoint do not require a credit check to consolidate student loans.

How do I consolidate student loans?

Generally you will fill in a single online application form and begin your new lower monthly payments within 4-6 weeks. Learn more about how to consolidate student loans with ScholarPoint and earning up to a 1.5% interest rate reduction off of our already low rates.