If you make three voluntary, on-time, full monthly payments before consolidating, you can choose from any of the repayment plans available to Direct Consolidation Loan borrowers.One option for getting your loan out of default is loan rehabilitation.
*NOTE: We previously indicated that loan consolidation would result in removal of the record of default from a borrower’s credit history.
Also, the record of default on the rehabilitated loan will be removed from your credit history.
However, your credit history will still show late payments that were reported by your loan holder before the loan went into default.
To start the loan rehabilitation process, you must contact your loan holder.
If you’re not sure who your loan holder is, you can log in to “My Federal Student Aid” to get your loan holder’s contact information.
However, your credit history will still show late payments that were reported by your before the loan went into default.