Dear USF Graduate Students,
Thank you for choosing Graduate Leverage to assist you with the consolidation process.
We have put a great deal of time into addressing the issues involved with consolidation,
and we’re excited to be able to offer our fellow students a support service. Using our
process you may complete the application and have assurance that you will be
consolidated at the lowest possible rate (before or after July 1 st). Based on today’s T-bill
rate, student loan rates are set to increase to 4.5% (from 2.77%). Therefore, Stafford
Loan interest rates will almost certainly increase and borrowers who do not complete
the process before July 1st will incur the higher rate. Additionally, we have received a
number of consolidation inquiries from Direct Loan borrowers who had already
completed an in-school consolidation. If you have in fact already consolidated your
loans with the Direct Loan program, you still may re-consolidate with our recommended
lender in order to obtain a lower rate.
This email has been broken down into the following sections:
1) Consolidation Selection and Loan Terms
2) Completing the Application and Viewing Information
3) Personalized Recommendation and Other Debt Management Issues
4) Communicating with Graduate Leverage
I. Consolidation Selection and Loan Terms:
If you decide to proceed with our recommendation, your consolidation will be completed
through American Education Services (AES/PHEAA). AES is the non-profit state agency
for Pennsylvania and manages more than $33 billion in total assets servicing nearly
four million students. AES has been in business since 1964 and you can read more
about their background at www.graduateleverage.com/aboutAES.html. All loans will be
originated by US Bank and funded by GCO Education Loan Funding Corp.
We have negotiated terms on behalf of all graduate students in our reservation system.
Collective bargaining has afforded us superior incentives and several terms in which no
other lender was willing to offer. These terms include:
1% interest rate reduction after 20 timely payments and .25% reduction
for electronic payments.
True Rate Reduction. Once your incentive is attained (reducing in-grace
Stafford rates to 1.625%), your monthly payment will be reduced commensurately.
Guaranteed Grace Period. All eligible borrowers who sign their application
before July 1st, 2005 will lock in the lowest rate and retain their full 6-month grace
Perkins Rate Reduction. All Perkins loans consolidated will be reduced to your
prevailing Stafford rate. This will result in significant interest savings as Perkins loans
are fixed at 5.0%.
Loan Sale Restriction Side Letter. The lender has agreed to forgo the option to
sell loans consolidated through our service. We think this is particularly important to
ensure accountability and loan terms.
Borrower Benefit Contract. The lender agreed to legally restrict its ability to
change any rate incentive achieved. Given this, you will have legal recourse if your rate
incentive were removed. You can view the agreement at the following link:
All negotiated terms are the result of feedback from our peers in an effort to ensure
their loans will be consolidated in a straightforward manner. These terms represent
considerable give on the part of the lender, and the last three are not available through
any other program in the marketplace. Ultimately, the goal was to remove the risks
associated with consolidation, while retaining the ability to lock in one of the lowest
II. Completing the Application and Viewing Information:
Your personal information is available at the following link, and we have populated the
application with all your Federal loan information. You will be prompted to create a
User ID and Password. The system will then recognize your identity and bring you to
your personalized application. If you have any questions on the application, or would
like someone to walk you through the process, please call 1-866-317-7967.
The application process takes about 10 minutes and you will need to:
1. Ensure that all information is correct
2. Complete reference information
3. Select repayment plan
4. Sign the application: If you would like to finish the process prior to your last day
of classes, you will need to print and mail the signed application to:
2311 North Front Street, Suite 119
Harrisburg, PA 17110
Once you have finished classes you are eligible to eSign your application or mail in
a hardcopy (based on your preference).
* If you choose to e-sign, using the FAFSA PIN option is recommended. If you received
your FAFSA Pin prior to Jan 1, 2005 you will need to reactivate the pin during the
E-signature process by going to www.pin.ed.gov and selecting 'Re-establish My Pin'.
Answer the three questions listed and click 'Submit Request'. You should receive a
confirmation page and can close the window. You will now be able to use your
FAFSA Pin to electronically sign your online application.
III. Personalized Recommendation and Other Debt Management Issues:
We indicated all federal loans we would recommend for consolidation with a check mark
on your application. Any loans which would result in an above market interest rate
have been excluded.
In an effort to reduce borrowers’ overall costs we will help individuals obtain the lowest
monthly payment for their student loans. This frees up extra cash to pay down higher
yielding loans or other expenses. Furthermore, borrowers without any additional debt
will still be better off by delaying payments due to the fact that student loan rates are
below inflation levels. This can be reduced by selecting graduated payments or adding
any private student loans to your application. While private loans cannot be
consolidated, they will be factored in determining the term of your loan (i.e. could allow
you to extend from 25 to 30yr loan).
Mortgage Application Support:
If you plan on purchasing a home in the near future we can provide assistance to
ensure that your mortgage broker/lender factors your student loan payments
accurately. Simply call the Graduate Leverage toll free management number at 888-
350-8488 and we can explain the process.
Private Loan Consolidation:
If you have a high private loan balance or multiple private lenders you may want to
consider private loan consolidation. There are currently six lenders offering different
private loan consolidation products and we would be happy to walk you through
IV. Communicating with Graduate Leverage:
All consolidation process questions should be referred to our processing center (1-866-
317-7967). This is an outsourced processing center however, so if at any time you have
questions about your specific situation and would like clarification from one of our team
members, you can reach us at 1-888-350-8488 seven days a week. Also please feel free
to reply to this email with questions. We would be happy to discuss loan selection,
private loans and any other debt management questions you may have.
Please feel free to call with any questions and best of luck with your final weeks of
The Graduate Leverage Team
www.graduateleverage.com (888) 350-8488