Higher Education Consolidation Loan

Rules & Guidelines

  1. The maximum loan amount is $25,000.00 (Please do not apply for more than is actually needed)
  2. Loan Specific Borrower and Guarantor Qualifications
    1. A minimum of two (2) qualified Guarantors are required for all Higher Education Consolidation loans.  If married, the non-borrower spouse is considered an additional guarantor.Additional Guarantors may be required should the Loan Committee deem it necessary.
    2. Guarantors cannot reside at the same address as the Borrower or any other guarantor (spouses are exempt from this clause)
    3. Provide documentation of income; paystubs, prior year’s tax return or 1099’s are acceptable.
    4. Statement from lender(s) documenting all student loan balances.


The Borrower is expected to pay off the note within six (6) years, in equal monthly installments, commencing approximately one month after receiving the loan. The specific terms will be determined by the Loan Committee upon approval of the loan and will be specifically stated in the Promissory Note.

Processing Steps to Follow:

  1. The borrower must complete a) his or her portion of the DHFLA loan application in detail,  b) must sign and complete the authorization letter, and c) sign the promissory note  (if married the spouse is considered an additional guarantor). The specific terms of the promissory note (commencement date and payment amounts) must be left blank and will be filled in by DHFLA at the time the loan is approved. Complete and sign the ACH authorization letter.
  2. Guarantors must complete their portion and sign the guaranty agreement, and the guarantor’s Information Release Authorization form. Note: Original signed documents are required, no faxes or emails are accepted.
  3. Once the application has been filled out in detail, the borrower may deliver or mail the application to the DHFLA office. He or She will be contacted for a personal interview.