Once a debt has been despatched to collections, the original creditor writes off the debt and takes an accounting loss. Federal student loan consolidation is also known as refinancing, which is incorrect because the loan charges are usually not modified, merely locked in. Unlike non-public sector debt consolidation, student loan consolidation does not incur any charges for the borrower; non-public corporations make money on student loan consolidation by reaping subsidies from the federal authorities.
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As you start to vary your occupied with your credit-card-debt scenario, you will have to appreciate that it was not you who caused the financial meltdown, it was the banking system. Further, you must know that after you stop paying credit card debt, the financial institution “wrote off” your debt and moved on.