Get Out of Debt Guy

How to borrow your way out of a student loan default and lower your payment

Posted January 10, 2015
Updated January 11, 2015

I can certainly understand why issues surrounding student loans seem like an unknown foreign language for many people. While the information is out there it seems that nobody knows what to make of it.

Almost the worst place to turn for advice seems to be the student loan debt collectors. In all fairness it just might not be their job to provide good advice and instead focus on collecting the debt. But that does leave the average student loan debtor out in the cold.

Today I’d like to talk about a little explored option when dealing with unmanageable federal student loan debt.

Through a quirk of policies and procedures the federal government has some amazing options to help those in default to deal with their debt.

People who pay attention to this advice should never find themselves letting their federal loans get so delinquent they end up with an Administrative Wage Garnishment or getting their Social Security benefits garnished.

The Government Will Lend You the Money to Get Out of Default

Through the U.S. Department of Education Direct Consolidation Loan program you can combine all your individual government student loans into one single loan. This has some great benefits. One little known benefit is if for some reason you ran into money troubles in the future, then your wages can only be garnished up to 15% rather than 25% if you have multiple outstanding loans.

By consolidating all your eligible federal student loans you will experience the following benefits.

…Click here to read the rest of this article.

Steve Rhode
WRAL Get Out of Debt Guy

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About this Blog:

Steve Rhode has had careers in opthalmology, real estate and as the head of a nonprofit debt counseling firm. On his blog, he offers hard-won, free advice about getting out of debt, consolidation and making the right choices as you manage your money.