Consolidating private loans into direct loans
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.You can also pay the balance off faster if you have the funds without penalties.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.The amount of debt you have sets the term length on your consolidation loan: There are no fees for consolidating and no penalties for early repayment.
One thing that’s critical to note – if you use a Direct Consolidation Loan to bring defaulted debt current, !
The funds you receive are disbursed to pay off your original federal student loans, leaving only the consolidation loan to pay off.
Consolidating debt is generally done to simplify debt repayment.
If you just want a quick and easy snapshot, you can visit our Solutions page for Federal Debt Consolidation Loans.
You can also call [PHONE_NUMBER] to speak with a student loan consolidation specialist confidentially at no charge.