Consolidating your student loans dating agency cyrano 11
There are special considerations if you want to reconsolidate an existing Direct Consolidation Loan or Federal (FFEL) Consolidation Loan that is in default: In addition, if you want to consolidate a defaulted loan that is being collected through garnishment of your wages, or that is being collected in accordance with a court order after a judgment was obtained against you, you cannot consolidate the loan unless the wage garnishment order has been lifted or the judgment has been vacated.
If you choose to repay the new Direct Consolidation Loan under an income-driven plan, you must select one of the available income-driven repayment plans at the time you apply for the consolidation loan and provide documentation of your income.
Take a look at the chart below to compare the benefits of loan rehabilitation versus the benefits of loan consolidation.
*NOTE: We previously indicated that loan consolidation would result in removal of the record of default from a borrower’s credit history.
Loan consolidation allows you to pay off one or more federal student loans with a new consolidation loan.
To consolidate a defaulted federal student loan into a new Direct Consolidation Loan, you must either Note: If you choose to make three payments on the defaulted loan before you consolidate it, the required payment amount will be determined by your loan holder, but cannot be more than what is reasonable and affordable based on your total financial circumstances.
You must provide documentation of your income to your loan holder.
You’ll regain eligibility for benefits that were available on the loan before you defaulted, such as deferment, forbearance, a choice of repayment plans, and loan forgiveness, and you’ll be eligible to receive federal student aid.While loan rehabilitation takes several months to complete, you can quickly apply for loan consolidation.