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To obtain a consolidation loan to pay off an existing student loan, call the collection agency representing the current lender and ask for a consolidation loan. The collection agency will search out a lender for a new loan. You must make 3 consecutive payments of at least $50 per month per loan to the collection agency to qualify for funding of the new loan. As long as you make consistent payments, all collection activity will cease.
Defaulted loans can go on a CCCS Debt Repayment Plan. In every instance minimum payments must be $50 per loan per month. After 3 consecutive payments (showing good faith), collection activity stops.
If a payment is missed, all prior arrangements are voided and you must start over with 3 more consecutive payments to stop collection activity.
Check your statements to determine interest and finance charges. Minimum payments of $50 may not be enough to substantially reduce the principal on the loan.
If you do not know which collection agency is handling your loan, you may call 1-800-367-1590.
For information call 1-800-621-3115 (very hard to get through, however). Essentially the same requirements as California loans.
