Consolidating defaulted perkins loan
The amount is determined using an Adjusted Gross Income (AGI) calculation. Should you default on the new loan repayment amount after the rehabilitation, the default will remain on your credit so it’s important to be committed and able to pay the debt.If your loan qualifies, rehabilitation is the option that Go Clean Credit would recommend because it restores your positive credit history.One way to resolve a defaulted loan is to combine your existing federal student loans into a new Direct Consolidation Loan from the US Department of Education (ED).Even if you have only one defaulted student loan, you may obtain a Direct Consolidation Loan to resolve the default.
Federal Perkins Student Loan rehabilitation is achieved by making nine consecutive, on-time monthly payments on a defaulted Perkins Loan. (A borrower may regain eligibility for Title IV funds after six consecutive, on-time monthly payments; however the loan is still considered to be in default.) A borrower must make a request to Vanderbilt University (or its contracted collection agency) in order to pursue rehabilitation of a defaulted Perkins Loan.
Federal loan consolidation offers a variety of potential benefits, including: Don’t fall for the scams out there offering to consolidate your Federally-funded student loan debt for a low price, like 0, or even 0.
If you’re contacted by anyone offering to consolidate your loans for a price, you should know that you are not speaking with an approved U. Department of Education consolidation servicer, and you should not provide them with any of your personal information.
When thinking about whether or not to consolidate your student loans, you’ll need to take a variety of factors into consideration.
The purpose of this article is to walk you through the process of understanding exactly what direct consolidation loans are, when they make sense, and when they don’t.A borrower may add eligible loans to a Direct Consolidation Loan by submitting a request to the Secretary within 180 days after the date on which the Direct Consolidation Loan is originated.