FedLoan Servicing Services are two major types of federal credit programs: FFELP and the William D. Ford Federal Direct Loan Program.
The services of FedLoan Servicing FFELP have been sold and transferred under legislation known as the Enduring Student Loan Continuum Access Myfedloan Act (ECASLA). As a result, the US Department of Education offered to buy FFELP loans from third-party lenders.
FedLoan also offers direct loan services provided directly by the US Department of Education. UU And these are not external lenders.
In order to qualify for direct consolidation, which can be serviced by FedLoan Servicing, the borrower does not have to go to school and have at least a direct loan or a FFELP loan, which is in a period of grace, reimbursement, deferment Suspension or failure. Loans in the state of the school can not be consolidated. Myfedloan 2019
If a loan defaults, the borrower can consolidate the loan only under two conditions: the borrower must agree repayment of the loan as part of an income-related payment plan or make payment arrangements with the current loan manager.