Deferrment while consolidating
Along with the harassing phone calls will come additional collection fees added onto your loan balance.
The collection agencies are allowed to charge reasonable fees as a commission for their services.
The reality is that many borrowers are not applying for these benefit programs while they are eligible, but rather once the collection calls have started and the eligibility for deferments are no longer available.
One of the most frustrating issues when falling into default on your Federal Student Loans is that the Department of Education can have a wage garnishment order placed on you until the loans are paid off.
There are some positives and negatives in regards to loan rehabilitation that the borrower should understand prior to starting the rehabilitation.
If the accumulating interest on the loan and the collection fees combined are larger than the monthly amount being paid to collections, the loan balance will increase.