Your rights and responsibilities are different depending on whether the loan is a federal or private loan.
Even if you know you have a federal loan, it is important to know which program you signed up with, and which type of loan you have.
Let’s say you have ,000 in unsecured debt—think credit cards, car loans and medical bills.
You don’t need debt rearrangement—you need debt reformation.
Most of the time, after someone consolidates their debt, the debt grows back. They don’t have a game plan to pay cash and spend less.
In other words, they haven’t established good money habits for staying out of debt and building wealth.
Their behavior hasn’t changed, so it’s extremely likely they will go right back into debt.
Even if you qualify for a loan with low interest, there’s no guarantee the rate will stay low.