Consolidating private loans in default

Will refinancing even be an option once you have a student loan in default on your credit report? Let’s start with borrowers who currently have a student loan in default.

If this sounds like you, refinancing will be likely impossible.

Consolidating your federal loans through the Department of Education is free; steer clear of companies that charge fees to consolidate them for you.

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[Back to top] Applying for consolidation takes most borrowers less than 30 minutes, according to the Federal Student Aid website.

It’s not a shameful or embarrassing position to be in. And, as I’ve recently learned, we have options if we aren’t afraid to pursue them. When that job finished, I moved to New York for graduate school and deferred my loans while studying for my master’s degree in education. I decided that I didn’t want to be a teacher anymore.

We all have our reasons for being in this situation. After graduation, I spent a few years teaching English abroad and paid my student loans every month without fail.

Often, we think we’re doing okay, but the financial house we’re building is just a house of cards.

One swift breeze and the entire thing could tumble down. The risk of defaulting on student loans increases if one or more of the following applies to you: If you’re experiencing any of these, don’t panic.

Consolidating private loans in default