Frequently Asked Questions (FAQ)


Student Loan 411 is leading the way helping borrowers with low-cost, risk free, solutions for repaying their debt, and empowering their employers and their colleges and universities to assist them through student loan debt crisis. Here are some of the most frequently asked questions.

Q. What is the difference between consolidating and refinancing your student loans?
A. If you have federally guaranteed student loans you may only consolidate your student loans. You can’t re-finance them. Consolidation is where you take your individual loans and group them by type (subsidized, unsubsidized, graduate and parent plus), while applying for a new loan. By type you can apply for one new loan that groups together all of your separate loans for that type. Even if you have four different types of loans, you can apply for consolidation at the same time with the same application process for all of your loans. If you consolidate your federally guaranteed student loans your interest will be the weighted average of the loans your have in your loan portfolio. If you are re-financing your loans, you are taking out a new loan without the federal protections and rights. Private loans will give you a better interest rates most of the time, but the terms are usually far less generous. They don’t have income driven repayment plans, the ability to get a deferment is limited, and the risk to your personal financial estate is much higher with a private loan.
Q. How Long Does the Process Take?
A.The real answer is it depends upon how large and how complicated your student loan portfolio is. Generally 2-3 months is the approximate time from start to finish. But some borrowers take longer
Q. Which student loans qualify for student loan forgiveness?
A. Almost any loan with a federal student guarantee can qualify for loan forgiveness. For some borrowers the forgiveness is tax-free, and for some borrowers the forgiveness will be taxable. Some loans must be consolidated to a direct loan to qualify. And, some loans that have been previously consolidated might have been consolidated in such a way that the benefit of tax free loan no longer applies. Those loans must be consolidated again into an acceptable form
Q. How many borrowers might be eligible for this program?
A. No one knows for sure. It is known that there are about 48 million federally guaranteed student loan borrowers.
Q. How much student loan debt is outstanding?A. The estimate is $1.4 Trillion.Q. How old is the oldest customer you have ever worked with
A. 80+ years. Federally guaranteed student loans remain collectible as long as the borrower is alive. Private student loans remain collectible even after the death of the borrower, and in some cases the death of a borrower can trigger other consequences.
Q. How much was the largest debt you have ever worked with?
A. We have borrowers in the mid-six figure debt (meaning over $250k in outstanding debt), and parent plus borrowers with a similar level of debt.
Q. Do you work with borrowers from any state?
A. Yes. We work with borrowers in any state.
Q. What do I need to know to get started?
A. In general the beginning point is your income, your outstanding loan amount, and information about whether or not your employer qualifies for Public Service Loan Forgiveness. If you don’t know how much you owe, there is a federal database for borrowers to look it up.
Q. What if I have already defaulted on my student loans?
A. We can work with the borrower to enter rehabilitation the defaulted of student loans,. Default is like a automatic hammer. It will keep swinging until you do something about your outstanding loans. Once your loans are in default any government payments you are entitled to are subject to interception. The only way out is to rehabilitate your loans.
Q. What advice would you give borrowers?
A. It depends upon your stage. If you haven’t borrowed any money, we would ask you to think about what you can afford to repay. If you have borrowed money, we hope that you will find a reputable financial advisor to work with to ensure that once you have tamed your student loans you put the money saved to the best possible use.
Q. Should I apply for forbearance if I am having trouble paying back my loans?
A. Forbearance is a tool of last resort. Therefore, for most people the answer to that question is no, unless you are eligible for an unemployment deferment. However, for unemployed borrowers, the best option is an unemployment deferment. Deferments get better interest treatment than forbearance. Interest continues to accumulate on student loans in forbearance, and the interest capitalizes. Capitalized interest is where you will pay interest on the interest. Generally if you are having problems paying back your loans it is because your income and the amount of loans you have don’t match. First, apply for an income driven repayment plan. If you are working, have applied for IDR, and are still struggling with student loan payment affordability, you might want to consider a debt burden forbearance. A debt burden forbearance gives borrowers several years to manage their other debt, to get to the point where the student loan payments are more affordable.
Q. What Is The Delinquent Borrower Report
A. The Delinquent Borrower Report (DELQ01) is available for both Direct Lending and FFEL Program schools. The DELQ1o identifies and focuses on students who are delinquent on their loan repayment obligation. With DELQ01, we ask schools to act as liaison between borrowers and loan servicers. Once the connection is made, there is help available to prevent the loan from entering default. For more information please contact.
Q. Are there any benefits associated with low official cohort default rates?
A. Yes, there are benefits available to schools with a low official cohort default rate.
Q. Why are cohort default rates important?
A. Defaulted federal student loans cost taxpayers money. By calculating cohort default rates, sanctioning schools with higher rates, and providing benefits to schools with lower rates, the Department of Education creates an incentive for schools to work with borrowers to reduce defaults. As a result, cohort default rates help save taxpayers money.
Q. What can my school do to help me?
A. They can make sure that you know your options, and that you enter into an appropriate repayment plan. Some schools go so far as ensuring your payment plan is set up before you graduate and it kicks in after your graduate.


We know how hard it can be to pay back student loan debt, so here’s how we’ve made it easy and risk free

1. You contact us.  We give you a free half hour appointment, and we identify and determine your need.

2. We’ll do the analysis and the approach, and the determine how the programs will best allow borrowers to pay off back debt.  0% of the fees you have paid us—no questions, no conditions, no small print.

3. If we feel that we’ve proposed a good approach, we’ll move forward with implementation to solve the debt challenge.

Why wait? Contact us now.