The Consolidation Process Time Table
The SOMA Sponsored Program assists doctors in managing their student debt through a structured consolidation process. Once an application is submitted, it undergoes a same-day review and processing, with loan verifications requested from current lenders. This process can take 6-8 weeks, but may extend to 90 days. Key challenges include potential errors in the application or issues with lenders. Borrowers are encouraged to stay patient and proactive, as the system can be complex. Communication with lenders and keeping track of progress is vital throughout the consolidation journey.
The Consolidation Process Time Table
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Presentation Transcript
The Consolidation ProcessTime Table SOMA Sponsored Program Doctors Debt Management
Once Application is Received:DDMs process • Review your application- same day • Submit to processing-same day • Request Loan Verifications with current lenders-same day or next day, the lenders have 14 days to respond • If they don’t release payoff, processing must resubmit- This is a stall tactic by many lenders so they can defend the loan • You should receive an app received letter
Be Patient!The consolidation system is not perfect! • This is the process that takes the longest! • Usually takes 6-8 weeks, but it can take up to 90 days or more • Last year 2005 because of the in school consolidations, there are some loans that were not completed until spring 2006 • No one was prepared for the response!! i.e. lenders and servicers • You may always call for updates! No letters will go out during this process
Funding of New Consolidation • Your new consolidation loan is now completed and the lender will send your disclosure letter-This is the Federal Law • This process in total may take up to 90 days with some companies-this is common in the market now • DDM also sends out a letter after it receives notice from the lender that the loans is funded. Usually by email!
Common Problems!Why loans do not get completed! • Borrower makes mistakes on application • Spelling errors- name especially • Reference Information- matching phone numbers and addesses • No signature or date on last page • No repayment plan chosen (need to have one even if you are going into deferment) • Borrower signed more than one consolidation-Very Common Mistake-The first application that gets in processing gets to retain the borrower
