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Consolidate or rehabilitate defaulted fed loans.
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Hey all, I'm in need of some advice from a reliable source, so I'm coming to a bunch of strangers on the internet.

Long story short is I defaulted my (federal) student loans, I've spent the last 9 months rehabilitating them to be able to get a consolidation done. Is this a smart thing to do? Or would it be better to rehabilitate with the original lender?

Currently I have 6 loans with fedloan and that shows on my credit as 6 loans unpaid and defaulted. If I consolidate I get those 6 loans showing as paid in full, and I believe that helps. My credit. On the other hand, it adds close to 10k to my 18k of debt in interest.

What is the best way to go about this? Do I consolidate? Or do I rehabilitate with fedloan and it keeps my 6 loans active and hurts my ability to build up my credit for it. I don't have any other outstanding debt and the school loans are all that's killing my credit.

Help!

Thank you, you sexy internet user you.

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Posted
6 years ago