Consolidating student loans after default
After the loan is consolidated, the defaulted student loan is reported to the credit bureaus as paid.
One of the best things about student loans are the numerous repayment options that are available.
One of the most frustrating things about student loans, is the lack of options borrowers may be presented with when calling for assistance.
It is the lack of knowledge about options that may cause many borrowers to end up defaulting on their student loans.
The guarantor will pay the lender and then begin collection proceedings.
The guarantor will charge additional collection costs causing the amount you originally owed on the loan to increase.
This allows students to return to school if they so desire and become eligible for additional financial aid.Negative information in the credit report impacts everything from borrowing money to renting a house or apartment.Under a loan rehabilitation agreement, your initial payment will be equal to 15% of your discretionary income.The third option for getting out of default is to consolidate your defaulted federal student loan into a Direct Consolidation Loan.Loan consolidation allows you to pay off one or more federal student loans with a single, new loan that has a fixed interest rate.