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Lump Sum Settlement on Defaulted Loan

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Joined 2014-01-17

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I am currently trying to handle two defaulted student loans.  I would like to pay them off with one lump sum payment, but understand that I could be hit with a 25% penalty fee on top of the principal and interest if the loans are still in default when the settlement is made.  Is there a way around this?  If I get a direct consolidation loan, will that take the loans out of default immediately?  Would I then be able to negotiate a lump sum settlement (without the 25% penalty)?  Thank you in advance for advice!