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can i consolidate defaulted loans in collections not eligible for rehab


The last post in this topic was posted 1429 days ago. 


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i've tried researching this, and can't seem to find any information. I have significant student loan debt. My loans were initially consolidated upon graduation. I then defaulted and completed rehab. After completion of rehab, i was in the process of changing jobs, moving, and a high risk pregnancy. Long story short, i attempted to find out who held my loans, and was unable to find out, and ended up falling behind on payments again..... I then had to take unpaid maternity leave due to using all sick leave for my weekly OB appts, so of course the loans went back into default.  Once i was back working, and back on my feet again, i called the department of education to start paying on the loans again, and was told they were in default and there was nothing i could do other than paying them off. The loans are subsidized and unsubsidized loans. I'm making payments to the collection company they were sold to, but am wondering what are my options at this point? these are 6 figure loans, so there is no option to pay them off. do they just remain in default for the next 15-20 years? i've tried calling the department of education, who says i have to talk to the collection agency, and all the collection agency says is that they aren't eligible for rehab, which i know. i know i can't be the only person this has happened to. I tried to find out if the subsidized and unsubsidized loans can be consolidated, but can't find a human to talk to.When i called the dept of education, all they did was refer me to whats on their website, which is very general information. I'm trying to find a human, who can look at my actual loans, and let me know what to do. i want to consolidate them  so i try for public health loan forgiveness due to my employer. thanks for any help. btw, everyone i ask about this says i may be eligible for rehab, but i am not. i've already done that, 7 years ago, and its a once in a lifetime opportunity. thanks for any help. 

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  • 2 weeks later...

Hello OP,


You can only re-consolidate your student loans if your current consolidation loan is under the former Federal Family Education Loan Program or FFELP. You can re-consolidate it into the William D. Ford Federal Director Loan Program (Direct Loan). You cannot reconsolidate a Direct Loan into another Direct Loan - it doesn't work like that. Since you have already used your one available Rehabilitation option, you are stuck paying the collection agency unless you can refinance it by a Private Student Loan Company which may require a co-signor or endorser on the loan in case you default again. I don't have any information about Public Health Loan Forgiveness, that may be a program special to your State or Employer.


Good Luck to you!

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The last post in this topic was posted 1429 days ago. 


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