Delays in processing consolidation loans.
Submitted by us-sabre on Mon, 09/26/2005 - 5:57pm.
Does anybody know how long the delay in consolidation loans is running right now? I applied for a consolidation loan at the end of May and it still has not gone through. One of the articles from the news section said that there was a huge rush right before the July 1 interest rate adjustment. The consolidation lender has stopped giving me even an estimate on how long it will take. I really could use the payment reduction right about now.
the "Log Jam" of 2005 :-)
The delays, or as we in the industry call it, the "Log Jam", took roughly 3-4 months to clear up, with some of the delays even taking up to 6 months. Numerous entities where involved in the delays, some private and some institutional. Some private companies took months to send out "LVCs" (loan verification certificates) which are required to create a federal student loan consolidation.
The DOE (department of ed) was slammed and backed up, the private companies (us included) where flooded with new applicants, at times the schools even played a part in the delays.
This year will be similar. Recent legislature will insure yet another mad rush... this time our company will do our best to insure the apps we process are done in the most efficient manner.
Student Loans is what we do. NextStudent.com :-)