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How do I consolidate my defaulted stafford unsubsidized and subsudized student loan held with the Dept. of Ed.

Dec 26, 2008 Student Dept

This entry was posted on Friday, December 26th, 2008 at 11:43 pm and is filed under Student Dept. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

2 Responses to “How do I consolidate my defaulted stafford unsubsidized and subsudized student loan held with the Dept. of Ed.”

  1. thylawyer Says:

    December 26th, 2008 at 11:49 pm

    If you mean there are default judgments against you in collection actions in a court, you need to file motions to remove default, indicating you need the removal in order to consolidate.

    If you are only in default on the payments, that should not keep you from consolidating. There are several consolidators that you can find online. The consolidator of last resort is the Dept of Education's William D. Ford Foundation, although I would recommend trying the others, especially if you are going to get new student loans. Keep the Ford Foundation for consolidating when you have finished borrowing.

    Remember that the loan repayments will be suspended while you are a full-time student.
    References :


  2. scottbirdsong Says:

    December 27th, 2008 at 12:09 am

    You should be eligible to participate in a loan rehabilitation program. After you have made 12 consecutive monthly payments that are both reasonable and affordable, FSA will agree to reinsure the loan. You will then be eligible to have the loan purchased by a lending institution. Once a loan is rehabilitated, it will be taken out of default, the credit bureau reports made by the servicing agency will be deleted, and you will again be eligible for additional Title IV student financial aid funds.

    NOTE: Once it is purchased by another lending institution, you will still have to make payments to them until the original loan is paid.

    If you can hang out for 12 months and make payments on time… this is a great solution.

    When you CONSOLIDATE a loan, the default statement will remain on you credit for up to seven years! Just FYI.

    Call- 1-800-621-3115 for additional information on the loan rehabilitation program.

    It is a great fix if you are planning on going back to school and concerned with your credit!
    References :
    My mistakes… and http://www.ed.gov


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