Consolidating education loan

17-May-2020 22:52 by 2 Comments

Consolidating education loan - Sexy feetfemdom

Your loan holder may be collecting payments on your defaulted loan through wage garnishment or Treasury offset (taking all or part of your tax refunds or other government payments).These involuntary payments may continue even after you begin making payments under a loan rehabilitation agreement, but they can’t be counted toward the required nine voluntary loan rehabilitation payments.

When your loan is rehabilitated, the default status will be removed from your loan, and collection of payments through wage garnishment or Treasury offset will stop.However, loan rehabilitation provides certain benefits that are not available through loan consolidation.Take a look at the chart below to compare the benefits of loan rehabilitation versus the benefits of loan consolidation.Consolidating multiple loans means you'll have a single payment each month for that combined debt but it may not reduce or pay your debt off sooner.By understanding how consolidating your debt benefits you, you'll be in a better position to decide if it is the right option for you.If you consolidate a defaulted loan, the record of the default (as well as late payments reported before the loan went into default) will remain in your credit history.

Late payments will remain on your credit report for seven years from when they were first reported.

Involuntary payments may continue to be taken until your loan is no longer in default or until you have made some of your rehabilitation payments.

Once you have made the required nine payments, your loans will no longer be in default.

If you’re not sure who your loan holder is, you can log in to “My Federal Student Aid” to get your loan holder’s contact information.

To rehabilitate a defaulted Direct Loan or , divided by 12.

student loan is subject to completion of a loan application/consumer credit agreement, verification of application information, credit qualification, and a benefit to borrower determination.