Default Student Loan Consolidation
Default student loan consolidation is a way to get help with your defaulted federal student loans. This guide will discuss the consequences of defaulting on federal student loans, why you should consolidate your defaulted student debt, working with debt collectors and how to get help with defaulted loans.
Default Student Loan Consolidation
If you get behind on your student loan payments, this is called being in default. Defaulting on a federal student loan can have serious consequences, such as losing eligibility for federal grant programs and the ability to make monthly payments through the Income-Based Repayment Plan. The government may also garnish your wages or tax refunds to pay off your debt. Private lenders may sue you or try to obtain a court judgment against you in order to collect their money.
In addition to these serious consequences of defaulting on private loans, depending on where you live, it’s possible that local law enforcement agencies can pursue criminal charges if they find out that you have not repaid them (or refused) after receiving notice from them about an outstanding debt owed by not paying off their debts within 30 days after being notified about them (see below).
Defaulted Federal Student Loan Consequences
- Defaulted loans are not eligible for deferment or forbearance.
- Defaulted loans may be eligible for a consolidation program.
- Defaulted loans may be eligible for a repayment plan.
- Defaulted loans may be eligible for a loan rehabilitation program.
Working With a Debt Collector
If you’ve defaulted on a student loan, it’s more than likely that a debt collector has already been contacted. But if you haven’t reached out to a debt collector yourself, there are many reasons why it’s worth a shot. Debt collectors can help people who have defaulted on their loans get the relief they need by lowering monthly payments and interest rates, among other options. When working with a debt collector, keep in mind that any change made will be permanent—so don’t make any decision without first thinking through all of your options and considering whether it’s right for you long-term.
Getting Help with Defaulted Loans
There are several ways to get help with defaulted loans. You can contact a debt consolidation company, which is a company that negotiates with your creditors on your behalf. It may be able to reduce the interest rate on your loan or even consolidate all of your loans into one loan with one monthly payment, which stops any new late charges from being added and helps you stay current on payments.
You can also contact a credit counseling service, which is similar but will charge fees for their services instead of negotiating directly with lenders. They’ll work directly with you to come up with a plan for how to pay down or repay the debt by helping you organize payment schedules, create budgets based on what you earn each month and helping track any progress made towards paying off bills over time so that no more late charges accrue in addition!
If none these options are available then reach out directly: first try contacting any lender(s) involved as well as their respective loan servicers – this means whoever handles billing and collections
It’s important to take action when dealing with defaulted student loans.
It’s important to take action when dealing with defaulted student loans. While it’s true that your credit score will suffer as a result of defaulting on your loans, you are ultimately hurting yourself more than anyone else.
You can’t get a student loan consolidation if you are in default—meaning that you’ve failed to make payments on your federal or private student loans for at least 270 days.
When it comes to defaulted student loans, there are many confusing and frustrating situations. Navigating these waters can be difficult, but if you know what you’re doing and work with a professional company like ours, it can all be taken care of in no time at all! Our team of experts will help you figure out what to do next so that everyone involved gets what they deserve: a happy ending.