Hello, I am a newbie and I have spent several hours researching this forum trying to get my questions answered. Thank you to all you wonderful, informative angels. It's good to know I am not the only one on this unpleasant ride.

My situation, loans originally with Sallie Mae now with United Student Aid Funds and in collection with Pioneer. Just received letter dated May 26 with demand for payment in full in 60 days or be assessed 22% more in fees. Spoke with Sallie Mae and Pioneer and was told repeatedly consolidation was NOT and option. Wanted to rehab me but wanted large downpayment which I found out is not required to enter rehab. They eliminated the downpayment but want $550.00 per month rehab payments (Loan total is 34k)

So in doing research I located the Direct Loans consolidation program and called them to find out if they take loans in default. They replied that they did so I applied today. If they accept me and United is paid by July 26th does that mean they will not assess the fee? I'm annoyed that I lost almost 2 weeks by believing
consolidation was not an option if it really is.

Has anyone done this? Is it likely I will receive the Direct loan and have I done the right thing? The payments on the direct loan will be close to the rehab amount by I'm thinking it will eliminate the 22% additional fees. If it does not would rehab be better?

Any help would be greatly appreciated and thank you so much already for the information I have already gotten from this forum. Allie