Why Consolidate with Ed Loan Funding?

Common questions about Ed Loan Funding and the Federal Consolidation Loan Program.

Who are we?

Ed Loan Funding is a private company that participates in the Federal Family Education Loan Program (FFELP), a program managed and overseen by the U.S. Department of Education.

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What is a Federal Consolidation Loan?

A Federal Consolidation Loan through Ed Loan Funding allows students and parents to refinance their existing federal education loan debt into one new low fixed interest rate loan. In addition to the low interest rate, when you consolidate through ELF you have the option of lowering your monthly payment by extending your payment term without any prepayment penalty.

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When can I consolidate?

Borrowers are eligible for federal student loan consolidation when all of the loans selected for consolidation are in a grace period or in repayment (including loans in deferment or forbearance).

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What loans are eligible for consolidation?

The following loan types are eligible for consolidation:

  • FFEL Subsidized and Unsubsidized Stafford Loans (SS/US)
  • Direct Subsidized and Unsubsidized Stafford Loans (DSS/DUS)
  • FFEL PLUS Loans
  • Direct PLUS Loans
  • FFEL Consolidation Loans
  • Direct Consolidation Loans (Variable and Fixed)
  • Federal Perkins Loans
  • Supplemental Loans for Students (SLS)
  • Health Professions Student Loans (HPSL)
  • Federal Nursing Loans
  • Federal Insured Student Loans (FISL)
  • Guaranteed Student Loans (GSL)
  • Health Education Assistance Loans (HEAL)

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How is the interest rate determined?

The interest rate on a Federal Consolidation Loan is set by calculating the weighted average of the existing loans being consolidated rounded up to the nearest one-eighth percent, not to exceed 8.25%. The loan carries a fixed interest rate for the life of the loan.

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I am currently in deferment/forbearance, am I still eligible to consolidate with Ed Loan Funding?

Even if you are currently delaying your payments, you may still be eligible to consolidate with Ed Loan Funding.

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What will be the length of my repayment term?

The length of your repayment term is based on guidelines established by the federal government. The repayment term is based on the total balance of your student loans to be consolidated not to exceed the maximum term allowed (30 years).

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Am I obligated to extend my repayment term?

No. The government sets your repayment term based on your total balance consolidated. You can shorten your term to any length you choose. At least initially, most borrowers go with the longest repayment term option to create a safety net in case any unexpected financial needs arise. Of course there are no pre-payment penalties so you can pay the loan off as quickly as you are able.

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Are there different types of repayment plans?

There are a few options to choose from:

  • Standard Repayment - A level repayment option wherein the payment amount remains the same throughout the entire life of the loan.
  • Graduated Repayment- This repayment plan supplies you with the lowest monthly payment to start, and gradually increases over time.
  • Extended Repayment- If your balance falls between 30,000 and 39,999 you are able to extend your term an additional 5 years (from 20 to 25 years).

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