Question about consolidation of defaulted student loans…?
I took out a student loan 5 years ago to go to college. Defaulted on loan (financially unable to repay).
Collector for Texas Guaranteed Student Loans Blah Blah called me yesterday, and guided me through the steps for the online application for consolidating the defaulted loan here:
www.loanconsolidation.ed.gov
He said it is a government program set up to give people who have defaulted on student loans a second chance.
Gentleman told me that if my applications is approved (and it probably will be), when it is processed, the record will show that I no longer owe money on a student loan.
Question is: once the record reflects my new situation (loan consolidated, debt no longer shows up, etc.), can I apply for and get another student loan?
Usually you have to make 6 on time payments before they will clear your default completely.
You can go to NSLDS.ed.gov and you will be able to view your loan history. Right now your loans will show as in a default status, once that default status is removed, you will then be able to apply for fin. aid. Or as soon as you receive a letter from the Dept. of Ed (not a lender or servicer) but directly from the Dept. of Ed. you can then apply for federal aid again.
Keep good records of all your paperwork relating to the clearing of your default, as you most likely will be required to turn this paperwork into the financial aid office at the school you want to attend.
Good luck