Federal student loans consolidating again


federal student loans consolidating again-42

Consolidation to get out of default works well for many borrowers with defaulted loans.

After obtaining a consolidation loan, you get a fresh start, becoming eligible for new loans, grants, and even deferments.

You are eligible to consolidate with the Direct Loan program as long as you have at least one FFEL or Direct Loan.

Direct Consolidation allows defaulted borrowers to make three consecutive reasonable and affordable monthly payments or agree to pay under Income Driven Repayment.

(Note: the last variable rate federal student loans were disbursed in 2006.