Consolidating a defaulted student loan doug from dating in the dark
This will bring your loan out of default status and update any consumer reporting agency listings made by OCAP.
You must maintain your payments until the loan rehabilitation is completed and you're contacted by your new lender.
Here’s what you need to know about dealing with default through either student loan rehabilitation or consolidation.
It’s important for all borrowers to know what default is and how it can affect them.
To participate in this program you must fill out and return the Rehabilitation Application to your servicer before they receive your ninth consecutive payment.
You must also: A lump sum pre-payment doesn't satisfy the requirements for nine consecutive monthly payments.
As long as the borrower makes the payment as soon as she can or contacts her loan servicer to discuss her options, a delinquency will not necessarily hurt her standing or finances.
Contact your servicer for more information on establishing payment arrangements and to request an application. To consolidate immediately, you must agree to repay your new consolidation loan under either the income-contingent or the income-based repayment plan.
« Back This program gets your loan out of default and allows you to combine all of your student loans into one loan repayable to the U. If you wish for any other type of repayment plan for your new consolidation loan, you must first: It may affect the total interest cost for your loan(s), the terms of your current repayment agreement and your loan forgiveness options.
However, the account will remain delinquent until the loan is made current; that is, until the borrower makes the payments necessary to bring her loan up to date.
The delinquency becomes really problematic 90 days after the initial missed payment, at which point it is reported to the credit bureaus.