Consider CFS Consolidation Services

Competitive Loan Perks

Please Note: CFS Loans was acquired by Chase in 2006. The following page has been retained for historical record of this previous option, but for current information on student loan plans like CFS offered, please visit this site for more details and current student loan consolidation offers.

Collegiate Funding Services (CFS) is a leading college student loan provider and servicing agency. Students apply directly for the Federal Family Education Loan Program (FFELP) loans or for a private student loan. CFS also offers, as part of its responsibility to the federal loan program, a federal consolidation loan.

Non-Negotiable Federal Consolidation Terms

The FFELP Federal Consolidation Loan has gone through a number of significant changes since July 1, 2006. For example, interest rates are no longer variable, but are fixed. The fixed interest rate is set for the loan’s lifecycle. The rate is calculated by taking the weighted average of all your federal loan interest rates as they stand on the day you apply for consolidation. That rate is rounded up to the next 1/8 th. Interest rates may not go above 8.25. Also, previous to July 1 married couples were able to consolidate their federal loans into one loan—no more. Students still in school may not consolidate loans until they graduate.

On a more positive note, when you consolidate federal loans you are not subjected to credit checks or insidious loan fees. You may consolidate your Direct Federal loans along with your FFELP loans.

CFS Terms and Borrower Benefits

The CFS Federal Consolidation Loan bundles its own borrower terms, such as repayment, balances, and rate reductions into the product to help identify it as a CFS product which will hopefully attract borrowers:

• Earn a .60% grace period interest reduction when you apply to consolidate your federal loans while still in your new grad six-month grace period.
• Loans in default are not eligible for CFS consolidation.
• Additional interest rate reductions may be earned for consecutive and on-time payments, as well as electronic payment deduction from your checking account. These benefits vary.
• You must have at least $7,500 in federal loans to be eligible for consolidation.
• If you apply for a loan in excess of $60,000 you may have up to 30 years to repay.
• No fees for early repayment.

CFS loan counselors are available to guide and advise you on the consolidation process, including the various pros and cons relative to your financial situation. If monthly federal loan payments are difficult to meet or if you have more pressing financial responsibilities, consolidation may be a valuable option. Also, if you rely on a good credit history, you may find that lower payments associated with a consolidation may give you an advantage in the debt-to-income ratio. Various lenders of all kinds typically review this credit-related figure during a loan or credit approval process.