Department of education consolidating loans
Absent an act of Congress, this financial move is not possible.If you look at the private student loan consolidation companies on the market, you will see there is a wide selection and that interest rates can be just over 2%.They will help you figure out the best way to resolve the default based on your individual circumstance.Default Resolution Group 1-800-621-3115 1-877-825-9923 TTY for the deaf or hard of hearing To rehabilitate most defaulted federal student loans, you must sign an agreement to make a series of nine monthly payments over a period of 10 consecutive months.If you didn’t make payments on your federal student loans and are now in default, don’t get discouraged.It may seem like an overwhelming situation, but you have multiple options for getting out of default.Remember, it’s in your best interest to act quickly to resolve the default, because the consequences of default can be severe.If you have a defaulted federal student loan owned by the U. Department of Education (ED), immediately contact ED’s Default Resolution Group.
If you make three voluntary, on-time, full monthly payments before consolidating, you can choose from any of the repayment plans available to Direct Consolidation Loan borrowers.
If you are unhappy with your repayment plan, interest rates, or Navient customer service but unable to pay off your loan, consolidating your loan could be the solution to your problems. At its most basic level a new lender pays off your old student loans. Borrowers can consolidate some or all of their loans. At the end of the consolidation process, your old loans are paid in full and you now how to pay off a new loan with newer, and hopefully much better terms.
If you are looking to consolidate Navient loans there are two processes you can go through. There are major differences between the two choices, so it is critical you make an informed decision.
Combining the wrong federal loans could result in borrowers not being eligible for preferred repayment plans.
Anyone considering federal direct consolidation should be sure to understand the pros and the cons of the process.