Consolidating your defaulted student loans can help improve your credit.
To pay for college, you may have received loans from different lenders. When it was time to repay your loans, you probably had a high interest rate, a payment that you could not afford or multiple school payments due each month. In some circumstances people may not be able to repay the student loans, which can lead to default. Fortunately, with ACS, the number one outsourced student loan provider for federal student loans, you can consolidate your defaulted student loans.
Instructions
1. Obtain a pin number to access and sign federal student aid information online. Visit Pin.ed.gov, the website for Federal Student Aid (see Resources), to either have a pin number mailed to you or to choose a pin number that can be used via email.
2. Find out which loans are in default. You need to know which accounts and how much they are in default before you can have them consolidated with ACS (Affiliated Computer Services, Inc.). Go to the National Student Loan Data System (NSLDS) at Nslds.ed.gov to find out what loans you have.
3. Determine the account numbers and specific totals that are in default. If your defaulted loans went to a collection agency, contact the agency directly to verify the specific amount due and your account number. Do not inform the collection agent that you are going to consolidate, as he may discourage you from doing so. The agency would rather collect the payment from you.
4. Visit the ACS website at ACS-education.com to begin the consolidation process. (See Resources.) You will need to have your loan information, the account numbers, your mailing address and basic information for your application. The process typically takes 30 days for ACS to verify the loans in question and to consolidate them into one account.
5. Sign the master promissory note and send it back to ACS. Signing a master promissory note assures ACS you will repay the loan that you are about to consolidate. This information is usually filled out online, or if you choose, you can print it out and mail it in.
6. Follow up with your ACS representatives to determine when you will begin to pay back the loans. If you choose to take more college courses, inform ACS after you are enrolled so you can set up an in-school deferment. In-school deferments allow you to stay in class without having to repay student loans until you graduate.
Tags: student loans, your defaulted, account numbers, defaulted student, defaulted student loans, federal student