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What is the difference between the consolidation program vs rehabilitation for defaulted student loans?

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What is the difference between the consolidation program vs rehabilitation for defaulted student loans?

Postby zach » Sun Jul 28, 2013 1:37 pm

In UK, 'consolidation' means taking out a NEW LOAN to pay back the first ... the new loan WILL be at a (much) higher rate of interest, but this will be 'hidden' because they will extend the time-scale so you are paying a bit less per month (eg say you owe $100 a month for 5 years .. 'consolidation' can turn this into $80 a month for 10 years ..)

... whilst 'rehabilitation' would suggest you start paying back the original loan again, but at a higher rate (in order to meet the original agreed timescale)
zach
 
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