Consolidating loans into direct loans
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Federal student loan borrowers have the option of consolidating their loans via the Direct Consolidation Loan program offered by the U. That loan is then serviced by the servicer of your choosing – of which Nelnet is one!
However, if the lender thinks you are a riskier borrower because you have poor credit, you may find that: You can use this comparison to search for loans that can be used for debt consolidation from regulated lenders.
If you are looking at credit card consolidation, then a balance transfer could be another option worth considering.
If you make 9 consecutive payments on a defaulted student loan it becomes current and all previous missed payments are removed from your credit report.
In this case, taking out this type of loan provides an additional benefit that can be significant, depending on your situation.
One thing that’s critical to note – if you use a Direct Consolidation Loan to bring defaulted debt current, !
By federal law, credit damage caused by missed payments on student loans are one of the few negative items that can be removed from your credit report completely in less than a year.
Consolidating debt is generally done to simplify debt repayment.
If you have multiple individual debts to repay it can get complicate to juggle all those bills within your budget.
Guarantor must be a tenant aged 21 to 70 years old.