Consolidating student loans get out default
With just a few exceptions, you get only one chance to consolidate with the government loan programs.WARNING: It is very dangerous to consolidate federal loans into a private consolidation loan.This guide can help you work through an issue with your loan servicer to resolve the dispute.2.Request Help from the FSA Ombudsman Group If you have followed the guide and still cannot resolve your issue, as a last resort, contact the Federal Student Aid (FSA) Ombudsman Group.Qualifying for Teacher Loan Forgiveness Pursuing Public Service Loan Forgiveness Investigating Other Ways to Reduce Your Student Loan Debt Community Q&A If you are struggling to make payments on your student loans, you aren’t alone – higher education is very expensive, and most students finish school with significant debt.Fortunately, if your loans are federal, you have access to a variety of repayment plans (including those based on your income), and you may also qualify for various deferment, forbearance, and consolidation options.If you and your loan servicer disagree about the balance or status of your loan, follow these steps to resolve your disputes:1.
As you weigh the pros and cons, keep in mind that timing is critical.
You will lose your rights under the federal loan programs once you choose to consolidate with a private lender.
Direct consolidation loans are now the only type of federal student consolidation loan.
Tens of millions of Americans struggle with a mountain of student loan debt and each year huge numbers simply stop making payments and end up in default.
That is a decision that undermines their creditworthiness and puts their financial well-being in jeopardy.