Getting transcript released with consolidation?

kelsmom
Sun, 01 Feb 2015 02:40:30 +0000

There are two separate issues here.

First issue is the defaulted loan. It’s a Perkins, so it is actually serviced through the school, and it sounds like this loan has been turned over to a collections agency. Since you have other federal loans, you can consolidate the Perkins and all of your other loans together. If your Perkins is not yet defaulted, you may be eligible for aid, but if you don’t resolve the Perkins issue prior to default, you will lose aid eligibility. Your outstanding balance on the Perkins has probably ballooned … it’s amazing how high the balance gets once the loan goes to collections … but you need to take care of it. You are not currently eligible for federal aid if you have a defaulted Perkins and/or defaulted Stafford loans.

Are you behind in repaying your federal Stafford loan, or are you in default? If you are behind, call your servicer. Ask about consolidating your Perkins and Stafford & getting into an income driven repayment plan. If you are not currently earning a lot, your payment will be low … it’s based on your earnings, not the amount owed. If you are in default, contact your servicer, who will explain your options.

The other issue is the balance you owe the school. You will have to pay the school before they will release your transcript.