When it comes to getting your Federal Student Loans out of default you have three options.

The first option is to pay off the loan.  This is probably not a realistic option for most people, but it is one of the ways to resolve the default.

The second option is Consolidation.  When you consolidate your Student Loans a new loan is issued. All of your old loans will be paid off in full and you will no longer be in default.  An 18.5% penalty will be added to the balance of your new loan.  The process takes 30-90 days.  You cannot consolidate your Student Loans if you are in an active wage garnishment. 

The third option is Rehabilitation.  With Rehabilitation, you must make 9 out of 10 monthly payments on time.  The monthly repayment amount is based on a specific formula or you can request a financial review if you cannot afford the formula-based amount.  A 16% collection fee is added.  You can only Rehabilitate your loan once.  Once you complete the Rehabilitation process, the “default” notation is removed from your credit report.  Rehabilitation can stop wage garnishments.

Which option is best for me?  Let the experienced Student Loan Attorneys at the Ciment Law Firm explain what your options are and set you on the path to Student Loan Debt Resolution and financial freedom.