Student Loan Consolidation Lowdown

NextStudent, a major student loan consolidation lender recently doubled its loan processing staff to combat the delays in getting back Loan Verification Certificates (LVCs) from other major student loan companies. At present some of the major student loan lenders are dragging their feet and are taking their time to return the LVCs. These certificates are required to complete the student loan consolidations currently in process.

The rush to consolidate student loans prior to the July 1 deadline, when interest rates increased nearly 2 percent, created a backlog in consolidation applications across the industry. Some major lenders are reported to be using delaying tactics to prevent students from completing their applications with the lender of their choice. This increase costs for students, as they still are responsible to pay off their current loans until the consolidation is complete. This means the students have no option but wait it out while their loans hang in balance. NextStudent is trying to correct this problem by employing more resources to process the loan applications that will be released by other lenders.

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