Consolidating student loans through the department of education

You can use the tools in the What Type of Loan Do I Have section to help you figure this out.

Once you know what type of loan you have, you can start figuring out how to deal with your individual circumstances.

If your loans continue to be delinquent, then they may go into default, which means the balance is due in full and the installment payments no longer apply.

The point that student loans are considered to be in default varies depending on the type of loan. Ford Federal Direct Loan Program or the Federal Family Education Loan Program, then you will default if you fail to make payments for nine months.

At that point, your credit score will have dropped and the lenders need to take action to recoup what you owe.

In wage garnishment, creditors will contact your employer and legally require them to give part of your earnings to pay off your debts.

For loans under the Federal Perkins Loan Program, then you may default if you don’t make any scheduled payment by the due date.

Even if you know you have a federal loan, it is important to know which program you signed up with, and which type of loan you have.If the borrower requests a hearing after the 30-day deadline, then the order will continue but can cease or the garnished amount may be adjusted after a successful appeal by the borrower.: Federal student loan holders are not required to have a judgment before their wages are garnished.There are other excellent resources if you are planning for college and thinking about how to pay for it.A good place to start is the Consumer Financial Protection Bureau’s online tool to help you compare financial aid offers.

Leave a Reply