But even with scholarships and Federal grants, most students will face a gap in their college fund that requires a student loan of one form or another.
These low interest Federal loans offer a substantial benefits as compared with private lenders.
And If you qualify for a Pell Grant, which is also awarded based on financial need, then you are probably also a priority candidate for a Perkins Loan.
One way to resolve a defaulted loan is to combine your existing federal student loans into a new Direct Consolidation Loan from the US Department of Education (ED).
Even if you have only one defaulted student loan, you may obtain a Direct Consolidation Loan to resolve the default.
In the process of consolidation, each original loan is paid in full and a new Direct Consolidation Loan is originated for the combined balance of the consolidated loans.
The controlled lower interest rates mean lower monthly payments and students are often eligible for extensions or deferments on repayment periods.