william d ford FEDERAL loans

[nipdoc]

Hi

I have an old DEFAULTED loan (from undergrad) that I am trying to clear (so I can borrow Federal loans again so I can finish grad school).

Direct Loans has instructed me to CONSOLIDATE all my Federal Loans and choose INCOME CONTINGENT REPAYMENT PLAN if i want to CLEAR my defaulted loan.


However, I am with Sallie Mae (for my med sch loans - both Guaranteed Stafford and Non-guaranteed Private loans). ....And they do IN-SCHOOL DEFERMENT....as long as one is enrolled "at least half-time".

I recently returned to school ...and just mailed in my IN-SCH DEFERMENT FORM with Sallie Mae.


My questions:


1) when William D Ford (govt) consolidates all my fedloans, ....will i then be on the INCOME CONTINGENT REPAYMENT PLAN? Will the govt OWN my loans (and NOT sallie mae anymore)?


or will I be in Sallie Mae's IN-SCHOOL DEFERMENT?


2) Can I consolidate ( with the govt) and STILL be in IN SCH DEFERMENT status with Sallie Mae?

hAS ANYONE done this,...or knows of anyone who has done this??

Thanks.

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[dragonfly99]

I'd suggest talking with the financial aid folks from your undergrad...they should know all about this.

I believe that you can only consolidate once, and once you consolidate you agree to start repaying...so I don't think you can consolidate and then defer the loans, but I'm really not sure.

I think I'll ask one of the moderators to move this to the financial aid forum.