Consolidating student loans in garnishment

When your loan is rehabilitated, the default status will be removed from your loan, and collection of payments through wage garnishment or Treasury offset will stop.

Unless you make three voluntary, on-time, full monthly payments on a defaulted loan before you consolidate it, your choice of repayment plans for the new will be limited to one of the income-driven repayment plans.While loan rehabilitation takes several months to complete, you can quickly apply for loan consolidation.However, loan rehabilitation provides certain benefits that are not available through loan consolidation.Once you have made the required nine payments, your loans will no longer be in default.To rehabilitate a defaulted Federal Perkins Loan, you must make a full monthly payment each month, within 20 days of the due date, for nine consecutive months.

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