Borrowers with defaulted FFEL or Direct Loan Program loans may be liable for collection costs incurred to collect the loans. If the holder of the defaulted loan, which may be either the U.S. Department of Education or a guaranty agency, retains a collection agency to collect defaulted loans, charges imposed by the collection agency may [...]
Posts from ‘April, 2009’
Can I Consolidate a Defaulted Loan?
Generally, Federal education loan(s) in default may be consolidated in a Direct Consolidation Loan if borrowers: * Agree to repay the loan(s) under the Income Contingent Repayment Plan. OR * Make satisfactory repayment arrangements with the current loan holder(s). If, before applying for consolidation, borrowers who want to completely clear the default notation from their [...]
Married couple may no longer obtain a Direct Consolidation Loan as joint borrowers.
Effective July, 1 2006 a married couple may no longer obtain a Direct Consolidation Loan as joint borrowers. Consolidate jointly with your spouse Effective July, 1 2006 a married couple may no longer obtain a Direct Consolidation Loan as joint borrowers. Source: Department of Education
If You are Facing Loan Default
For student loans authorized under Section 435(i)Title IV of the Higher Education Act, default occurs on a Federal Family Educational Loan (FFEL) program loan after a default has persisted for 270 days in the case of a loan repayable in monthly installments or 330 days in the case of a loan repayable in less frequent [...]
You can make a payment now by credit or debit card
Student loan borrowers in default now have more options than ever before to repay their student loans. The U.S. Department of Education’s (Department) Default Resolution Group is assisting individuals in default. This site will provide you with information on the following loan programs: Federal Family Education Loans (FFEL), which include Federal Stafford, Federal Consolidation and [...]
Can I consolidate an existing consolidation loan?
Yes, under three conditions: Borrowers can consolidate existing consolidation loans into a new Direct Consolidation Loan if they include at least one other FFEL or Direct Loan into the new consolidation loan. Borrowers can consolidate a single Federal Consolidation Loan if the loan is in default status or has been submitted to a guaranty agency [...]
Can I consolidate my loans if I am enrolled in school?
Yes and No. Effective for Direct Consolidation Loan applications received on or after July 1, 2006, borrowers who are enrolled in school cannot consolidate loans that are in an in-school status. These are loans that have not yet entered or used up the 6-month grace period entitlement. Borrowers still can consolidate loans that are in [...]
Can I consolidate health professions loans?
Yes, With a Direct Consolidation Loan, borrowers can include certain health profession loans sponsored through the U.S. Department of Health and Human Services with other Federal education loans in their Direct Consolidation Loan. Borrowers must include at least one Direct Loan or Federal Family Education Loan (FFEL) Program loan in the Direct Consolidation Loan. Eligible [...]
Consolidate Perkins Loans into a Direct Consolidation Loan
It is possible to consolidate Perkins Loans into a Direct Consolidation Loan if borrowers include at least one Direct Loan or Federal Family Education Loan (FFEL) in their request. Perkins Loans cannot be included in a Direct Consolidation Loan by themselves. Furthermore, all Perkins Loans consolidated into the Direct Loan Program will be included in [...]
About Loan Consolidation
Consolidation loans allow you to combine different types of federal student loans to simplify repayment. Even if you have just one loan, you can also choose to consolidate it. Both the FFEL and Direct Loan Programs offer consolidation loans. There are several advantages to consolidate or rehabilitate your loan as described in the categories below. [...]