Is it possible to consolidate DOE loans and then enter into a rehab agreement? What would happen to the loans - would they show as charged off, paid, current, or just vanish when they became null?

I have a dozen or so DOE loans and I would like to consolidate them and then set up a payment plan. Of course it would be advantageous to me if all the other loans were removed from my reports.

Who should I contact the DEO directly?

Thanks for your input.

Are you in default??

You cannot consolidate then rehab. Rehabbbing takes the loan out of default as does consolidation. You can rehab then consolidate but not the reverse.

When you consolidate, the paid loans are not removed from your report. They are simply marked paid.
When you rehab, only the reporting lenders tradelines are make as paid and negative information is removed.

Hello Lynn,

Yes, unfortunately due to a layoff last year my DOE loans went into default. I figured I might have to rehab first, but was hoping otherwise as it would have provided me with a best case scenario. I could have paid down one loan instead of having to track multiple rehabs.

What steps would you recommend that I take to get these defaulted loans rehabilitated? Should I call or write the DEO – do the pros of one out weigh the other method? I pulled a 3in1 report yesterday and the outstanding accounts are listed by DP OF EDUC but the condition is listed as Collection/Chargeoff. As you may recall from a post yesterday the GRC called so they may very well have taken over the collection of those defaulted loans.

Thanks for your assistance.

If you are assingned to GRC, call them. The DOE will not help you when you have been assigned to an agency.