Frequently Asked Questions

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Frequently Asked Questions

Student loans are not hard to understand, but they can be complicated when trying to manage them. We have all been there and seem to always get the run around from our servicers. Here are the most common questions about student loans and consolidation

Are there any student loan repayment options based on the current income of the borrower?

A: Yes, there are three income-driven options, the Pay As You Earn, Income-Contingent Repayment Plan and the Income-Based Repayment Plan. Call us to discuss which plan may be available to you.

When do I begin repayment?

Repayment of a Direct Consolidation Loan can begin 60 days after the loan is disbursed, or sooner. Your loan servicer will let you know when the first payment is due. The repayment term ranges from 10 to 30 years, depending on the amount of your consolidation loan, your other education loan debt, and the repayment plan you select. Note: If any loan you want to consolidate is still in the grace period, you can delay entering repayment on your new Direct Consolidation Loan until closer to your grace period end date. You will indicate this when you apply, and the consolidation servicer will wait to process your application until the appropriate time.

What are the consequences of defaulting?

A: Your federal student loans are considered in default after 270 days (nine months) of non-payment. Consequences include: Immediate increase in the interest rate of your student loans to 18.5 percent in addition to any collection agency fees. Immediate loss of your Title IV financial aid benefits. Negative reporting to the three credit bureaus, which could result in difficulties obtaining credit cards or home and auto loans. Withholding of your federal income tax return by the IRS to repay the defaulted student loans. Administrative wage garnishment of up to 25 percent of your paycheck.

What happens if I am in default?

We deal with these types of situation and most would be surprised that this situation represents 45% of our clients. This is not an issue and a enrollment counselor will be able to guide you on the right program to fit your specific needs. You will be able to be put back into good standing on all of your open loans.

What happens to my old servicers?

Your loans will be held and funded at the Department of Education. They may at some point be passed back to your original servicer or a new servicer but will be enrolled and compliant on your new program .

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43460 Ridge Park dr #260 Temecula, Ca 92590
Phone: 855-539-9191
Email: [email protected]

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EDUCATION ADVISORY GROUP “EAG” is a for-profit business that for a fee assists in compiling, preparing and processing paperwork for people seeking consolidation, restructuring and/or forgiveness of their federal student loans through the U.S. Department of Education’s (“DOE”) programs. · EAG is not affiliated with and has no special relationship with the DOE or any other academic or governmental entity. · This site and is not affiliated with or endorsed by the DOE, and the content or any information posted on this site is not endorsed by and does not reflect the views of the DOE. · You can apply for loan consolidation or alternative repayment programs on your own without paid assistance through the DOE at EAG is not a loan servicer and does not renegotiate, settle, or in any way alter the terms of any payment or debt.