I've recently discovered that my FFEL consolidation loan has gone into default and I have been trying to research the ways in which I can try to resolve the issue. I've been contacted by the gurarnty agency, but want to make myself aware of all the options before making any kind of arrangements with them. My understanding is that I can consolidate the loan again, but only through the Direct Loan program if I am requesting IBR or ICR. I'm hoping you all can give me some help on some things I'm not sure about: 1. If I do consolidate, would it remove negative tradelines from my credit report or does that only happen with a rehab plan? 2. What would you recommend, rehab or consolidation? 3. If it's in "default" status in the NSLDS does that mean my original lender no longer has it and I absolutely have to go through the guaranty agency? 4. If I have a student loan & am unemployed, but my husband works (he has no loans) would they count his income as well. Could all this affect his credit, etc...or is it just tied to me? Thanks in advance.
1.) No, I don't believe it would remove any of the old negative marks 2.) If you can work out arrangements with the guaranty agency that you know you can afford, rehab the loan and pay it off as fast as you possibly can. 3.) Yes, I believe you'll have to work directly with the guaranty agency now. 4.) Your husband's credit shouldn't be directly impacted in any way; however, his income will be considered when determining eligibility for things like IBR or ICRP
