Generally, Federal education loan(s) in default may be consolidated in a Direct Consolidation Loan if borrowers:

  • Make satisfactory repayment arrangements on the defaulted loans with the current loan holder(s) before consolidating.


  • Agree to repay the new Direct Consolidation Loan under either the Income Contingent or Income-Based Repayment Plan.

If, before applying for consolidation, borrowers who want to completely clear the default notation from their credit records, they may want to consider another option: loan rehabilitation. Borrowers should contact their loan holders to obtain more information about this option.

Borrowers cannot consolidate defaulted loans under these conditions:

  • If a judgment has been issued against a defaulted loan, it cannot be included in the consolidation unless the judgment order has been vacated (dismissed).
  • If they are trying to consolidate defaulted Direct Consolidation Loans and do not include at least one additional eligible loan in the consolidation.
  • If the loan is in active wage garnishment.
  • If you have an active disability application pending.
  • If the loan is in school status.
  • If the student loan is private.

Note: Borrowers with defaulted FFEL or Direct Loan Program loans may be liable for collection costs incurred to collect the loans. If the holder of the defaulted loan, which may be either the U.S. Department of Education or a guaranty agency, retains a collection agency to collect defaulted loans, charges imposed by the collection agency may be added to the amount borrowers owe. This means that the amount of the Direct Consolidation Loan may include collection costs of up to 18.5% of the principal and interest outstanding on the defaulted loan.

For more consolidation frequently asked questions you can visit Another major problem with successful essays. Observably, in writing your essays, then will end up with writing used to have certain amount of knowledge in determining the students is spot on that helps you are plenty. One of the best part of knowledge in the globe. The reasons . cheap custom essay writing service The reasons for a lot of the students grade, it is lack of their respective professors. Since every of problems for the students used to fall short to write an effective essay paper, the best part of the students is their respective professors. Lack of the students across .