Loan consolidation

Consolidate your loan(s)

The Direct Consolidation Loan program refinances your federal defaulted student loan(s) into a new loan, with a single interest rate and repayment schedule.

Benefits of consolidating your defaulted student loan(s) include:

  • Bringing your federal student loan(s) out of a default status
  • Restoring your eligibility for future Title IV federal financial aid, including federal grants

Most defaulted loans can be consolidated if you make three consecutive, voluntary, on-time monthly payments or agree to repay the new Direct Consolidation Loan under either the Income-Contingent Repayment (ICR) plan or Income-Based Repayment (IBR) plan. Accrued interest and collection costs will be capitalized, or added, to your principal balance.

Contact ECMC at 855-810-4922 to discuss consolidation or other options for dealing with default.

Click here to watch a short video about the Direct Consolidation Loan program.