| Defaulting on a student loan, by not paying your | | | | in for consolidation of your defaulted student loans, |
| installments for up to two hundred and seventy | | | | then you will have to pay at least three monthly loan |
| days, is one of the worst financial messes you can | | | | installments on time in order to be eligible for a |
| land yourself in. Without a student loan consolidation, | | | | federal consolidation of your defaulted loan. Students |
| you could be sued, your wages garnished and your | | | | prefer going for federal loan consolidations since they |
| tax refunds seized even before you know what hit | | | | are more lenient than private loan consolidation |
| you. And your already bad credit record will take a | | | | schemes. |
| beating for the worse. | | | | Once you are able to avail a federal loan consolidation |
| On top of this, you will not be eligible for most credit | | | | of your defaulted student loan, then your lender will |
| cards, mortgages or any other kinds of loans. You will | | | | pay off all your outstanding loans and issues you with |
| also have to pay very high collection costs on your | | | | a new consolidated loan that can be paid of by |
| loans, amounting to almost twenty five per cent of | | | | means of a single monthly installment. The rates of |
| your defaulted student loan amount. However, there | | | | interest on consolidated loans are also lower than |
| are ways and means of recovering from a defaulted | | | | what you pay on most of your other loans. In fact, |
| student loan. You can rehabilitate your loan, apply for | | | | consolidation can decrease the amount of your |
| consolidation of your defaulted student loan or pay | | | | monthly payments by almost 40%. On top of this, |
| off the loan all at once. | | | | most loan consolidation schemes will also give you |
| Consolidation of all the loans that you took as a | | | | long repayment periods. |
| student is the most popular method of paying back | | | | Once you have consolidated your defaulted student |
| defaulted loans. This is because most people who | | | | loan, your credit report will also start looking better |
| end up defaulting on their student loans do not have | | | | since it will mention that the defaulted student loan |
| the economic resources to rehabilitate or pay back | | | | has been paid back fully with consolidation. However, |
| their loans without taking financial help. | | | | your student loan's default notation will still mar your |
| However, keep in mind that even if you want to go | | | | credit history for at least seven years. |