What if consolidate a defaulted loan?
In that case the record of the default as well as late payments reported before the loan went into default will remain in your credit history. Late payments will remain on your credit report for seven years from when they were first reported. It's important that you fully understand loan rehabilitation and loan consolidation before making your decision.
Sounds good. Can I also reconsolidate a defaulted FFEL Consolidation Loan?
Yes, you may reconsolidate a defaulted FFEL Consolidation Loan without including any additional loans in the consolidation, but only if you agree to repay the new Direct Consolidation Loan under an income-driven repayment plan.