Rehabilitation or Consolidation for Defaulted Student Loans?
Consolidation is a quick fix to defaulted federal student loans. Rehabilitation takes a bit longer but has some major advantages.
Did you know?
Consolidation can cause your debt to temporarily double on your credit report.
This happens when the new loan is reported to the credit bureaus, but the old loans are not yet removed.
Servicer Selection
Federal consolidation is one of the few times that borrowers get to pick their loan servicer.
Borrowers considering PSLF should select MOHELA as they handle all of the PSLF applicants.
Consolidation is a quick fix to defaulted federal student loans. Rehabilitation takes a bit longer but has some major advantages.
I consolidated my loans, but somehow my debt doubled. After a couple of scary days, I learned a lot about the federal consolidation process.