Select Page

Virginia Student Loan Consolidation By John G. Merna

There are generally two ways to cure default on your federal student loans: 1) consolidating the loan 2) rehabilitating the student loan.  Your choice on which to use depends on a variety of factors from what collection action is going on to what type of loan you have.

The biggest problem you have and need to be aware of when curing your student loan default is that you are going to get hit with a penalty fee of 18.5%.  Does this really matter? In most cases not really.  I say this because if you are in a student loan management program with an attorney who is working to keep your payment as low as possible while the clock is ticking to get you to qualify to have any balance forgiven the amount you owe is irrelevant.  Who can do manage your student loans until the balance can be forgiven?  We can.  It is not free.  Great deals usually are not.  But it is affordable and you will save a considerable amount of money especially if you are not managing them well now.

Consolidation

As of 2010, consolidations can only be done through Direct Loans.  The great knews is you don’t necessarily need to be making a monthly payment while you are requesting a consolidation. The new consolidation loan term can be as long as 25 years and the process takes about 30 to 90 days from time of application.

In a nutshell, what is done in a student loan consolidation is the old loan is paid and a new loan is created.  You should be aware that if you are being garnished for the student loan it can not be consolidated out of default.  Never fear.  There are ways to manuever you back to being able to consolidate.

Rehabilitation

The one thing a rehabilitation does that a consolidation does not do is help your credit.  When a loan is rehabilitated the “default” flag on your credit report is removed.  So there is no record the loan was ever in default and your credit score will respond accordingly.

In a consolidation, the defaulted only loan remains on your credit even though it is paid off.    To rehabilitation a federal loan a borrower must make nine payments over a ten month period.  Payment amount depends your financial situation.  There are slight differences in how rehabilitation works depending on the type of federal loan.

As always, hiring a student loan lawyer to manage you out of student loan agony is worth it.  If you are reading this blog you are probably in default so you are having difficulty managing your student loans.  On top of that you are wasting valuable time that could keep the clock ticking towards your debt being forgiven.  Get a virginia student loan lawyer on your team today to manage your student loan debt and get back to a stress free life with a light at the end of the tunnel.  Call us today.

Call us at 800-662-8813 about bankruptcyFill out a financial evaluationChat now about bankruptcySchedule A Free Bankruptcy Consultation - Virginia Beach, Richmond, Newport News

Connect on Google+

REQUIRED BAR NOTICE: THESE TESTIMONIALS DO NOT GUARANTEE SIMILAR RESULTS.

 The Merna Law Group, Attorneys At Law, P.C. …kind and friendly from the start!5 Stars! “Everyone there was kind and friendly from the start and helped us with everything in a timely manner. They were never rude no matter how much we called or asked questions.” Reviewed by B.P. of Virginia Beach on Feb 20 . 
 The Merna Law Group, Attorneys At Law, P.C. Didn’t have to worry about anything!5 Stars! “Just keep providing the type of service you do. You business values are based off reliability and service. Today’s Law Offices just don’t offer that kind of experience. Didn’t have to worry about anything!!! Just being able to go on with my normal life and know that all my issues are well taken care of is a relief in itself.” Reviewed by A.P. of Virginia Beach on Mar 4 . 
 The Merna Law Group, Attorneys At Law, P.C. …overall experience was outstanding!5 Stars! “My husband and I were very happy with The Merna Law Firm. They are well organized, time manageable, and friendly. I was even able to bring my children with me if I needed to. In court, they stayed right there beside us and answered all questions we had. Our overall experience was outstanding and I am glad we were represented by the Merna Law Group.” Reviewed by A.M. of Suffolk on Mar 5 . 
 The Merna Law Group, Attorneys At Law, P.C. …debt free!5 Stars! “A friendly staff and outstanding attorney who helped me through a difficult time in my life. Thanks to everyone at the Merna Law Group who helped me move on to and new chapter in my life debt free!” Reviewed by M.F. of Norfolk on Mar 8 . 
 The Merna Law Group, Attorneys At Law, P.C. …very helpful and friendly!5 Stars! “Everyone at the office was very helpful and friendly. The attorney answered all of our questions and helped us through the entire process. He was also very helpful answering concerns that we had after the process was completed/over. Highly recommended!” Reviewed by M.E. of Virginia Beach on Mar 11 .