Reconsolidating federal student loans
You can also consolidate with Direct Loans to use the public service forgiveness program or the limits on interest accrual for military service-members.If you defaulted on a Direct consolidation loan, you cannot consolidate again with either program unless you are adding new loans to the consolidation. You can look into getting out of default by rehabilitating your loan.If you meet these requirements, you might be an excellent candidate for student loan refinancing and consolidation!If you don’t think you meet the requirements, don’t worry – as you can apply with a cosigner to increase your chances of getting approved for a better student loan.You are eligible to consolidate with the Direct Loan program as long as you have at least one FFEL or Direct Loan.
These borrowers may resume their payments after their service is completed.
Finding the right bank to refinance or consolidate your student loans is confusing.
Fortunately, we’ve highlighted the six best banks and lenders to help you refinance and consolidate both private and federal student loans, based on your financial situation.
Despite what a collector may tell you, if you select income driven repayment, you do not have to make three payments before applying for consolidation.
All borrowers, including those in default, must apply on-line through or download the paper application and mail it to the Department.You will no longer be listed as currently in default on your credit records, and no longer subject to tax intercepts, garnishments, or other collection efforts.Once you are out of default, you can also choose one of the income-driven repayment plans.These include deferment, forbearance, cancellation, and affordable repayment rights.