Contact your servicer for more information on establishing payment arrangements and to request an application. To consolidate immediately, you must agree to repay your new consolidation loan under either the income-contingent or the income-based repayment plan.« Back This program gets your loan out of default and allows you to combine all of your student loans into one loan repayable to the U. If you wish for any other type of repayment plan for your new consolidation loan, you must first: It may affect the total interest cost for your loan(s), the terms of your current repayment agreement and your loan forgiveness options.
If the borrower stops making payments as agreed upon in the promissory note, the lender will put a default status on the loans after 270 days of non-payment.
A lump sum pre-payment doesn't satisfy the requirements for six consecutive monthly payments. Once you're eligible for aid, if you become more than 15 days delinquent on your loans, you'll be ineligible for any additional aid under this program.
« Back This program takes your loan out of default and removes the default from your credit report.
To learn more, see What Happens if You Default on Your Student Loans.
Here are the various ways to get out of default: You can get out of default if you qualify to have your loan canceled (discharged).
This is the best option, because when you cancel the loan, you are no longer obligated to repay it.
However, there are limited ways to qualify for loan cancelation, so this option won't work for many people.
Consolidation to get out of default 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.
It essentially means that the borrower is late on a payment, but has not fallen into default on their loans yet.
In many cases there can be consequences to being delinquent, which may include various fees, and having it noted on your account with collections agencies if the delinquency has lasted at least 90 days.