Should I Consolidate or Rehabilitate my Federal Student Loan
Should I Consolidate or Rehabilitate My Federal Student
Loan?
Consolidation
Rehabilitation
Consolidates previous loan(s) into one new loan.
Allows you to get out of default quickly without making any preliminary payments.
You must rehabilitate each individual loan. After the rehabilitation process is over, you still have the same loan, but it is now current.
Requires nine payments in a ten month period to get out of default.
No resale requirement.
For federally guaranteed loans, the rehabilitation process is not complete until the loan is sold or assigned to the government.
You may have to negotiate "reasonable and
affordable" payments with collectors to get out of
No need to negotiate "reasonable and
default. This is much easier for borrowers now that
affordable" payments with collectors.
collectors are required to start by using the 15%
IBR formula to determine reasonable and affordable
payments.
One time deal. With either of these options, you only get 1 chance to get out of default.
Fees of up to 18.5% may be added to the balance.
Fees of up to 16% may be added to the balance.*
Collectors cannot come after you once the consolidation or rehabilitation process is complete, as long
as you stay current.
Allows you to have access to flexible repayment plans which calculate your payment based on your
income. If you stay current with your payments, any remaining balance on the loans will be forgiven
after a certain period of time (20 or 25 years depending on the program).
Slightly worse for your credit report because the notation Slightly better for your credit report because the notation
indicating that you were in default and other negative indicating that you were in default will be erased. Other
information will remain on your credit report for 7 years.
negative information remains for 7 years.
You might lose some legal rights and defenses. You retain your prior legal rights and defenses.
You can choose your servicer.
No choice of servicer after rehabilitation.
Repayment Calculator - Estimate your monthly payments: For more information about student loan consolidation, rehabilitation, and repayment, visit:
.
* The government currently waives collection fees for Direct Loan rehabilitations.
Boston Headquarters: 7 Winthrop Square, Boston, MA 02110-1245 Phone: 617/542-8010; Fax: 617/542-8028
Washington Office: 1001 Connecticut Ave, NW, Suite 510, Washington, DC 20036-5528 Phone: 202/452-6265; Fax: 202/463-9462
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- when student loans linger urban institute
- tuition fees other student charges policies
- annual report of the cfpb private education loan ombudsman
- student loan request
- department of education student loans overview fiscal
- in the united states district court for the middle
- the debt collection improvement act
- federal student loan defaults
- student loans bankruptcy and beyond united states courts
- should i consolidate or rehabilitate my federal student loan
Related searches
- federal student loan forgiveness for nurses
- federal student loan forgiveness teachers
- federal student loan income based repay
- federal student loan forgiveness paperwork
- federal student loan garnishment laws
- federal student loan hardship application
- federal student loan wage garnishment
- defaulted federal student loan help
- should i rent or buy a home
- my federal student loan payment
- should i rent or own
- should i save or invest