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New Contributor
Posts: 69
Registered: ‎07-27-2008
0

How many times can you consolidate?

I was wondering how many times one can consolidate federal student loans.

 

I can't seem to find a limit which begs the question: why can't someone default, consolidate and default, consolidate etc. over and over?

Valued Member
Posts: 38
Registered: ‎06-15-2012
0

Re: How many times can you consolidate?

A person probably wouldn't be able to default over and over once he/she has destroyed his/her credit.

New Contributor
Posts: 69
Registered: ‎07-27-2008
0

Re: How many times can you consolidate?

You don't need good credit to consolidate. I'm talking consolidation through the department of ed. Not refinancing.

Valued Member
Posts: 38
Registered: ‎06-15-2012
0

Re: How many times can you consolidate?

I found the following on their website:

 

  • If you want to consolidate a defaulted loan, you must either make satisfactory repayment arrangements on the loan with your current loan servicer before you consolidate, or you must agree to repay your new Direct Consolidation Loan under the
    • Income-Based Repayment Plan,
    • Pay As You Earn Repayment Plan, or
    • Income-Contingent Repayment Plan.
  • Generally, you cannot consolidate an existing consolidation loan again unless you include an additional Direct Loan or FFEL Program loan in the consolidation. However, under certain circumstances you may reconsolidate an existing FFEL Consolidation Loan without including any additional loans.

https://studentaid.ed.gov/sa/repay-loans/consolidation

 

So there are certain circumstances where you could reconsolidate a consolidation loan, but I doubt a loan in default would be one of those circumstances.

New Contributor
Posts: 69
Registered: ‎07-27-2008
0

Re: How many times can you consolidate?

 

"Borrowers can consolidate a single federal consolidation loan if the loan is in default status or has been submitted to a guaranty agency for default aversion by the loan holder"

 

New Contributor
Posts: 69
Registered: ‎07-27-2008
0

Re: How many times can you consolidate?

anyone else have any thoughts?

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