Who do i contact about consolidating my student loans dating someone who has just ended his marriage
But the loan structure, interest rate and how you qualify varies greatly from other types of consolidation loans.
This guide is designed to help you fully understand how these loans work.
With this option however, you consolidate and pay off debt to immediately fix the default status on your debt.
One thing that’s critical to note – if you use a Direct Consolidation Loan to bring defaulted debt current, !
The weighted average refers to giving greater importance to your largest volume debts.
So if you have a ,000 loan at 5% and ,000 at 6% then the weighted average would be closer to six. In other words, if your weighted average rate ended up being 5.75% then the final rate on the consolidation loan would be 5.875%Remember, you must have at least one Direct loan among the debts you want to consolidate with a Direct Consolidation Loan.
Normally to bring defaulted federal student loans current, you would need to make at least nine consecutive payments on time to get each loan up to date.
If you’re already struggling to keep up with your payments, that can be tough.
Direct consolidation restrictions and additional notes As described above, one of the benefits of consolidating this way is that it immediately brings defaulted debt current so you can qualify for Federal Repayment Plans.
By federal law, credit damage caused by missed payments on student loans are one of the few negative items that can be removed from your credit report completely in less than a year.
If you make 9 consecutive payments on a defaulted student loan it becomes current and all previous missed payments are removed from your credit report.
Roughly 80% of student loan debt comes from federal loan programs.
If you’ve ever used a debt consolidation loan to take care of credit card debt problems, you may think you understand how a Federal Direct Consolidation Loan works for student loan debt. You use a Federal Direct Consolidation to consolidate federal student loan debt into one easy payment.