Hello,

Let me begin by thanking anyone that is able to offer any insight. I screwed up big time over the last several years. Without getting into details I have more or less been ignoring my student loan debt as if it would magically disappear. I went through a period of unemployment and at that time stopped making my payments and/or communicating my situation to the servicer of the loan. I know I have “made my own bed” and have to sleep in it now, and I accept that. I have been trying to straighten out my finances and besides my outstanding student loans, I am in manageable shape. Today, I was told that this is my second default on my loans. As a result I was told I had two options by PHEAA, the agency that has purchased my loan.

Option 1 is to agree to a monthly payment that I cannot afford.
Option 2 is to consolidate my loans but first have to make a good faith payment and then they will give me 90 days to consolidate but made it clear that I would be responsible for figuring that part out.

Before I start the consolidation process on studentloans.gov I wanted to be sure that this is my best option. Is there anything out there that I need to be aware of before beginning the consolidation process? I understand that I am responsible for any decisions that I ultimately make, and know I need to make this happen quickly.

If anyone has experience with this or can offer any advice, it is very much appreciated.