Federal student loans consolidating again

These include deferment, forbearance, cancellation, and affordable repayment rights.Federal Consolidation Loans for Borrowers in Default As of July 1, 2010, the Direct Loan consolidation program is the only government consolidation loan program.

An interruption in this consecutive period is allowed for qualifying military service members or affected civilians.

These borrowers may resume their payments after their service is completed.

See the programs for military section of this site for information about other options for military service members and certain civilians affected by war or national emergencies.

Consolidation 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 will no longer be listed as currently in default on your credit records, and no longer subject to tax intercepts, garnishments, or other collection efforts.

Once you are out of default, you can also choose one of the income-driven repayment plans.

You should consider the pros and cons of consolidation before making this choice.

This section contains information about how to consolidate if you have already defaulted on your loans.

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