Consolidating defaulted private student loan
If your wages are being garnished, you will have to make these voluntary payments in addition to the garnishment.Once you make the first five payments, the garnishment order will be suspended.
The automatic payment discount may not change your monthly payment amount depending on the type of loan you receive, but may reduce the number of payments or reduce the amount of your final payment.
Each method has advantages and disadvantages, so let's run through those as well as how much extra each option will cost you.
(While you can fix some consequences of default depending on the option you choose, you will likely end up paying fees.
Even if your rates seem high, t he Department of Education puts a cap on consolidation loan rates at 8.25 percent.
One major advantage of federal consolidation loans is that borrowers don't need a stellar credit score to qualify, they can apply any time (even if their loan is in default) at Loan gov, and they'll always get a fixed interest rate.