Frequently Asked Questions
With PerformanceSLC, the application process range is between 30 and 90 days. Returning our requested documentation to us in a timely manner will shorten the application process. So, how fast you get those documents back to us determines the length of the process.
PerformanceSLC encourages you to make all prior scheduled student loan payments on time until you get notification that your loans have been consolidated and you have a new payment. Among other issues, making late payments on your student loans may have a negative affect on your credit scores.
No two student loan consolidations are the same. Items that affect your student loan payments after consolidation include: your annual income, the size of your family, your loan balances, your interest rates after consolidation and your new payment plan. At PerformanceSLC, we will help you achieve a consolidated student loan monthly payment that is affordable for you and your family.
The majority of the time, when you have already consolidated your student loans, you will not be able to get a second consolidation as a means to get you out of default. In a case where you consolidated previously under the FFEL Consolidation Program, we may be able to help you. In this case, PerformanceSLC will assist you in working with your current lenders to find the most affordable solution to returning your loans to good standing status.
Once PerformanceSLC completes your federal student loan consolidation, you will be eligible for additional financial aid for your education. You may also receive a deferment of the payment on your recently consolidated student loans so long as you are enrolled for at least what is considered half time.
Student loan consolidations with PerformanceSLC have a positive effect on credit. Once consolidated, the loans will show up as paid off and the default no longer reports. This will help you improve your credit scores when applying for credit cards, automobile loans and mortgage financing. If you are current on your federal student loans during the time of processing the consolidation, you will not see a negative mark on your credit or a reduction of scores so long as you make all scheduled payments on your existing student loans.
When you originally received your federal student loans, you signed a document that stated you agreed with the terms of your loans. When you signed for your federal student loans you also agreed to the dollar amount of the loans, the monthly payment, the interest rate, the loan term and collection costs should your loans enter into default status.
Collection costs may be as much as 24% with those fees added to the balance of the loan. Those fees are recalculated annually and will depend upon administrative costs that are subject to change and whether or not the defaulted student loans are submitted to a third party collection agency or attorney. Fees for collection activity may add to your existing student loan balances.
Defaulting on your federal student loans could create serious issues. These issues come to pass when you choose not to voluntarily make payment arrangements. Communication is the best policy when it comes to defaulted federal student loans, and when you do not reach out to your loan servicers, they will assume that you are trying to avoid the debt. When you choose the no communication strategy, you may have your wages garnished, your state and federal tax refunds seized, and lose your professional licensing.