In the few past blogs in this series we have discussed how to cure defaulted student loans through consolidation of loans or rehabilitating loans. Also we have touched upon the importance of knowing which option is best for each person who is facing default. There are many advantages and disadvantages to both consolidation and rehabilitation that collectors fail to mention, due to monetary incentives for themselves. It is important to know what the pros and cons of each are before deciding on a cure that suits a borrowers situation.
As discussed in last week's blog, rehabilitation is a cure to defaulted student loans. However, rehabilitation has some limits attached to it. These limits hinder debtors from using rehabilitation as a solution for default, and therefore they must seek other ways to address the problem.
In last week's blog in our series we discussed curing defaulted student loans through consolidation. However, consolidation is not always the best choice for someone facing default. Another solution to curing default is to rehabilitate defaulted loans. Thus giving that person renewed eligibility for new loans and grants.