Consolidating private loans in default
It’s important for all borrowers to know what default is and how it can affect them.A student loan borrower is considered to be delinquent the day after she misses a scheduled loan payment.Other assumptions include a 21 month in-school period, 6 month grace period, a standard repayment account, and the student remains in school through the expected graduation date. Actual rates and payment information may vary based on applicable terms. Citizens Bank reserves the right to modify interest rates at any time without notice.#Product Line=Edfi|Brand=citizensbank|Product Set=trufit Parent Product Set|product Name=Tru Fit|rate Type=Fixed|repayment Type=Interest Only|loan Type=Undergraduate|term=10|based On=10,000|Product Attribute=loan Options::repayment Example::min::interest Only Payment#, depending on the interest rate during the 45 month in-school period and the 6 month grace period. Such changes will only apply to applications taken after the effective date of change.Each option has its pros and cons, but either choice will set you on the right track to getting out of default and improving your financial situation.Here’s what you need to know about dealing with default through either student loan rehabilitation or consolidation.
In addition, the program also focuses on people enrolled in military service or those who work with certain governmental institutions.
And If you qualify for a Pell Grant, which is also awarded based on financial need, then you are probably also a priority candidate for a Perkins Loan.
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The following paragraphs provide more information about eligibility for the Forgiveness Act, as well as the impact this program will have on former students.
The first condition to be met by former students who want to apply for the program in 2014 is to have applied for a federal loan, such as a Stafford or a Perkins loan.