Consolidating defaulted federal student loans
The Department of Education web site has information about the fees the government charges when you take out a Stafford loan.There are limits on the amount of Stafford loans you can borrow.Unless the lender determines that extenuating circumstances exist, you will not pass the credit check if you: Consolidation is similar to refinancing a loan.You can consolidate all, just some, or even just one of your student loans.
There is more information on Stafford loan limits on the Department of Education’s web site.
The fixed interest rate for undergraduate Stafford loans first disbursed on or after July 1, 2019 and before July 1, 2020 is 4.53%. Most older loans from before July 2006 have variable interest rates.
After 2007, the interest rates are fixed, but change almost every year.
Under the Direct Loan Consolidation Program, you can consolidate just about any type of federal student loan into a new Direct consolidation loan.
Loans that are not eligible for consolidation include state or private loans that are not federally guaranteed. The fixed rate is based on the weighted average of the interest rates on the loan at the time of consolidation, rounded up to the nearest one-eighth of a percentage point.
Search for consolidating defaulted federal student loans:
The interest rate must not exceed 8.25% for consolidation loans prior to July 2013.