My loan amount is held by ED. what happens when the debt collector gets involved?
If your loan is placed with a collection agency, you will be responsible for costs incurred by your loan holder to get payment. These costs amount to 17.92% of your loan amount if your loan is held by ED. Other loan holders may charge a different amount.
Yes, of course. Now I have to inquire about Direct Consolidation Loan. After defaulted loans have been merged, what comes next?
Your Direct Consolidation Loan will be eligible for benefits such as deferment, forbearance, and loan forgiveness and you could receive additional financial aid; and the defaulted loan would still be on your record of credit history.