Consolidating student loans through department education

That cell of the table has now been corrected to indicate that loan consolidation will not result in removal of the record of default from the borrower’s credit history.If you rehabilitate a defaulted loan, the record of the default will be removed from your credit history.Also, the record of default on the rehabilitated loan will be removed from your credit history.

However, loan rehabilitation provides certain benefits that are not available through loan consolidation.You must provide documentation of your income to your loan holder.If you can’t afford the initial monthly payment amount described above, you can ask your loan holder to calculate an alternative monthly payment based on the amount of your monthly income that remains after reasonable amounts for your monthly expenses have been subtracted.However, your credit history will still show late payments that were reported by your loan holder before the loan went into default.If you consolidate a defaulted loan, the record of the default (as well as late payments reported before the loan went into default) will remain in your credit history.

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