Consolidating student debt
That cell of the table has now been corrected to indicate that loan consolidation will not result in removal of the record of default from the borrower’s credit history.If you rehabilitate a defaulted loan, the record of the default will be removed from your credit history.However, your credit history will still show late payments that were reported by your loan holder before the loan went into default.If you consolidate a defaulted loan, the record of the default (as well as late payments reported before the loan went into default) will remain in your credit history.This commonly refers to a personal finance process of individuals addressing high consumer debt, but occasionally it can also refer to a country's fiscal approach to consolidate corporate debt or Government debt.Interest is the fee charged by the creditor to the debtor, generally calculated as a percentage of the principal sum per year known as an interest rate and generally paid periodically at intervals, such as monthly. Although there is variation from country to country and even in regions within country, consumer debt is primarily made up of home loans, credit card debt and car loans.
Individuals can issue debtors a personal loan that satisfies the outstanding debt and creates a new one on their own terms.
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.
These loans, often unsecured, are based on the personal relationship rather than collateral.
In United States, there are certain companies and private law firms, addressed as debt relief companies and/or debt consolidation companies, that provide professional debt consolidation services.
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In some countries, these loans may provide certain tax advantages.