Have you defaulted on your federal school loan?
yes and a collection agency is involved
You are liable for the costs of collecting your defaulted federal student loans. The largest of these costs are usually the costs of placing your loan with a private collection agency. They amount to 17.92% of your outstanding balance, which includes principal, interest, and fees.
Where can I find some assistance if I have a defaulted student loan?
Do you need help with your defaulted loan?
Yes, I do.
Then you will need to contact the holder of your defaulted loan. Find out who holds your loan by logging in and selecting "view loan servicer details". Remember: StudentAid.gov does not include information about any private student loans you may have received.
What if consolidate a defaulted loan?
In that case the record of the default as well as late payments reported before the loan went into default will remain in your credit history. Late payments will remain on your credit report for seven years from when they were first reported. It's important that you fully understand loan rehabilitation and loan consolidation before making your decision.
Sounds good. Can I also reconsolidate a defaulted FFEL Consolidation Loan?