Frequently Asked Questions

We take great pride in the quality of our customer service and would be happy to answer any questions regarding the AAN Student Loan Program. Please feel free to contact us with further questions.

1. What is the Single Lender Rule and how does it affect me?

The Single Lender Rule was a federal regulation that required borrowers who had only one lender/servicer of all their student loans to seek a consolidation from that lender. However, due to a recent change in legislation, the Single Lender Rule has been eliminated, so you are now free to seek out the most competitive benefits and best customer service in the marketplace and consolidate with whomever you choose!

2. Can I consolidate my loans if I’m still attending school?

Federal legislation has eliminated the in-school consolidation option. You are now only able to consolidate if your loans are in a grace period, deferment or forbearance, or in repayment.

3. Will consolidation help me?

Are you having trouble making your monthly payments?
Do you find it difficult to keep track of your lenders, which loans they have and when they are due?
Would you like one lower monthly payment to one lender?
Would you like to lock in your current interest rate?

If you answered “yes” to any of these questions then consolidation may be the answer you are looking for.

4. What are the advantages of a consolidation loan?

There are many benefits to consolidating your loans, including:

One lender, one loan, one payment. You no longer have to keep track of multiple loans or lenders.
Lower monthly payments. A consolidation loan extends your repayment term based on your total outstanding balance, which can decrease your monthly payment by as much as 60%.
One fixed interest rate. Your interest rate will be fixed for the life of the loan based on a weighted average of your existing loans.
Choice of repayment plan. You choose either a standard, a graduated, or an income-sensitive repayment plan. Talk with a loan counselor for more information.

5. What are the disadvantages of a consolidation loan?

There are also disadvantages to consolidating your loans, including:

Increased interest costs. Due to extending your repayment term, you will pay more interest over the life of the loan.
Loss of some types of deferments. Talk with a loan counselor for more information.
Takes longer to pay back. Depending on the balance, you can take as long as 30 years to pay off a consolidation loan.

6. What loans are eligible for consolidation?

Any of the following loan types are eligible for consolidation:

Stafford Loans
Perkins Loans
Graduate PLUS Loans
Parental Loans for Undergraduate Students (PLUS)
Health Professions Student Loan (HPSL)
Health Education Assistance Loans (HEAL)
Federal Insured Student Loan (FISL)
Auxiliary Loans to Assist Student Program (ALAS)
Federal Direct Student Loan (FDSL)
National Defense/Direct Student Loan (NDSL)
Supplemental Loans for Students (SLS)

7. How long does the consolidation process take?

The consolidation process takes approximately 3-5 weeks depending on how quickly the information is returned from your other lenders

8. What will my interest rate be?

Your interest rate is a weighted average based on the current interest rates of your loans rounded up to the nearest 1/8th percent. This is a fixed interest rate and will not change for the entire term of your loan.

9. Is my interest rate fixed or variable?

Your interest rate will be fixed – it will not change for the entire term of the loan.

10. Will I need to continue paying my current student loans?

Yes, but only until your new consolidation loan is finalized. Loan(s) that you have through us can be put in forbearance so that you will not be required to make those payments until the consolidation loan has been finished.

11. Can I still get deferments and forbearances?

As part of the federal lending program, your consolidation loan is eligible for the same deferments and forbearances that were available for your individual loans.

12. What if I am still in my grace period?

Ordinarily, when you consolidate you will lose any remaining grace period. However, we can delay completing your consolidation until near the end of your grace period if you choose.

13. When is the first payment due?

The first payment is usually due about 25 days after the consolidation is completed. You will receive a repayment disclosure with the amount of the consolidation, how much and exactly when your payments are due about a week after the consolidation has been finalized.

14. Once I consolidate, can I refinance later?

Once you consolidate all your federal student loans, you will not be able to refinance it later. However, if you acquire more federal student debt, you may be able to reconsolidate your existing consolidated loan with the new debt.

15. Will you check my credit report?

No. A federal loan consolidation does not require a credit check or income verification.

16. Can some loans be forgiven?

Some federal student loans may be eligible for forgiveness if you work in certain fields, such as teaching, law enforcement, nursing, armed forces, etc. If any of your loans qualify for a forgiveness program, you may want to leave those out of the consolidation.

All information contained in this Web site is subject to change without notice, depending in part, on changes to the Federal Higher Education Act. Your benefits will not be affected if your loan has already been disbursed.