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.