Consolidating student loans after
Private student loans and Perkins loans operate under different rules, and for more information on getting out of default, you should reach out to your servicer or the school you attended.Another way to get out of default on a federal student loan is to consolidate it.The types of loans eligible for school closure loan cancellation are Direct Loans and FFEL, PLUS and Perkins loans.In order to apply for school closure loan cancellation, fill out this form and mail it to: U. Department of Education Federal Student Aid Processing Group Regional Office, Room 8633 50 Beale St.San Francisco, CA 94105-1813 False certification You can apply for false certification loan cancellation if the institution you attended falsely certified your eligibility for federal student aid.The National Consumer Law Center describes the four ways this can happen: “There are four specific categories that can lead to a discharge.As of July 1, 2014, there are new regulations governing how you rehabilitate your loans, and allow you to pay as little at a month to rehabilitate your student loan.If a debt collector refuses to offer you an option for which you believe you qualify, submit a complaint with the Consumer Financial Protection Bureau online or call (855) 411-2372.
If your application for loan cancellation is accepted, not only will the debt be canceled, but in most cases, the government must repay any previous payments and help restore your credit.
For many borrowers, this is the most practical option for getting out of default.
Learn more » Canceling your loan is only available in limited situations, but if you’re in default, it could be an option for you.
You can have your federal student loans canceled for school-related reasons, such as your school closing, or in the event of disability or death. Department of Education will accept payment in the form of checks, money orders or credit or debit cards.
Learn more » You could choose to pay the full amount of what you owe on your loan to get out of default. Learn more » On this page, we write exclusively about getting out of default on your Federal Direct and FFEL student loans.