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Things you need to Know About Loan Rehabilitation

Loan rehabilitation requires you to make a series of installment payments. You must make a minimum of 9 voluntary, qualifying installment payments on time for the full amount due. And to be on time, the payments must be received within 20 days of the due date.
The payments must be made within a period of 10 consecutive months, beginning with the month of the first payment due date. However, if you are trying to rehabilitate a Perkins loan, the 9 payments must be made within 9 consecutive months. We will discuss your student loan types with you when we with speak with you on the phone.
The Loan Rehabilitation program requires you to sign a Loan Rehabilitation Agreement. Additionally, the different types of loan rehabilitation programs require you to provide us with supporting financial documentation.
Any remaining collection fees on your loan(s) will be waived once your loan is rehabilitated.
After you have made the 9 required, timely, qualifying payments and returned the required paperwork, your loan will be transferred to a new servicer. You will need to continue making payments until your loan is transferred.
Once your loan is transferred, you will have to set up a new repayment plan with the new servicer. This may result in payments that are higher or lower than the payments you were making for the Loan Rehabilitation Program

Things You Need to Know About Loan Consolidation

Because consolidation usually increases the period of time you to have to repay your loans, you might make more payments and pay more in interest than would be the case if you don’t consolidate.
Consolidation may also cause you to lose certain borrower benefits—such as interest rate discounts, principal rebates, or some loan cancellation benefits—that are associated with your current loans. We will discuss your student loan types with you when we with speak with you on the phone.
If you’re paying your current loans under an income-driven repayment plan, or if you’ve made qualifying payments toward Public Service Loan Forgiveness, consolidating your current loans will cause you to lose credit for any payments made toward income driven repayment plan forgiveness or Public Service Loan Forgiveness.
If you want to lower your monthly payment amount but are concerned about the impact of loan consolidation, you might want to consider deferment or forbearance as options for short-term payment relief, or consider switching to an income-driven repayment plan.
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Once your loans are combined into a Direct Consolidation Loan, they cannot be removed. The loans that were consolidated are paid off and no longer exist.