A Consolidation loan can simplify the loan repayment process by allowing the borrower to combine several types of federal student loans and repayment schedules into one. The repayment process is simplified because only one payment must be made each month. Often, the interest rate on the consolidation loan is lower than what is currently paid. Even if a borrower is in default on a federal student loan, they might be eligible for a consolidation loan if certain conditions are met.
Why go through student loan consolidation when according to the Federal Register, student loans are securitized which means that student loans were sold or are pooled with other student loans and endorsed into a trust.
These trusts are called asset backed securities.
What is an Asset Based Loan?
A commercial asset based loan provides businesses with immediate funds and ongoing cash flow based on a percentage of the value of your company’s assets such as commercial accounts receivable, inventory, business equipment and machinery, and recurring revenue contracts. Funds from asset based finance can be used for day-to-day operating expenses, or as capital for restructuring, turnarounds, mergers and acquisitions and buyouts.
How does Asset Based Lending provide working capital?
First Capital assigns your business a revolving line of credit based on a percentage of each of the qualifying asset classes. You may draw on your line of credit whenever needed and pay back to increase availability for future use. You only pay interest on the funds you’ve drawn down so overall, it’s less expensive than a term loan.
All notes securitized by a transfer of the "borrower's" or grantor is void and uncollectible. Also, securitization of a COPY of the note is a violation of the Uniform Commercial Code Article 9. If the note is not endorsed into the trust the note is void and uncollectable.
Note: Student loan debt collectors violate the Fair Debt collection Practices Act because they threaten to take you to court and they have no intentions of doing so. In some cases this violation is worth $1,000.00 fine.