During this period of time, eligible borrowers will receive an additional interest rate reduction on a portion of the loans consolidated.
Private student loans and Perkins loans operate under different rules, and for more information on getting out of default, you should reach out to your servicer or the school you attended.
Another way to get out of default on a federal student loan is to consolidate it.
If you have several federal education loans, you may want to consider combining them into one new loan with one monthly payment.
This is called loan consolidation and can help keep you organized and on track with repayment. Department of Education (ED) encourages borrowers with both types of loans to consolidate them into the Direct Loan program.
Please be aware that other federal loans, such as Perkins Loans, Health Education Assistance Loans (HEAL), Health Professions Student Loans (HPSL), Nursing Student Loans (NSL), and Loans for Disadvantaged Students (LDS) cannot be consolidated through the Special Direct Consolidation Loan but may be included in the Traditional Direct Consolidation Loan.
Qualifying Special Direct Consolidation Loan borrowers will receive a .25% interest rate reduction on their consolidated FFEL loans plus the .25% interest rate reduction for payments made through automatic debit.If you just want to reduce your monthly payment, discuss the federal loan repayment options available with your lender. Single Payment If you have loans with multiple lenders/holders, you send a monthly payment to each.However, if you consolidate all those loans, you make a single payment.Also, you might lose eligibility for certain cancellation or forgiveness programs, especially if you are including Perkins Loans in the Consolidation.(In either case, check with your lender.) More Interest Paid With a longer repayment period, you'll pay more interest over the life of the loan.Want to simplify your life with one monthly payment? There is one caveat: federal student loans can be combined into Federal Direct Loan Consolidation but private student loans can't.