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FAQ

We understand that the student loan process can be scary & confusing.
Find out more student loan relief information below.


What are the benefits of a Direct Consolidated Loan?

Instead of juggling multiple payments to multiple lenders, you can reduce the stress of keeping up with each loan as well as save money each month due to lower payments.
Numerous repayment plans are available for borrowers to choose from, some of which are flexible which can help you with your changing needs.

When loans are issued, they come with a limited amount of deferment options. If those options have been exhausted, borrowers may qualify for renewed deferment benefits with a Direct Consolidated loan.


Can I consolidate jointly with my spouse?

No, Effective July, 1 2006 a married couple may no longer obtain a Direct Consolidation Loan as joint borrowers.


Is there a credit check required to consolidate my loans?

No, a credit check is not required to consolidate your federal loans.


How long does it take to consolidate my loans?

Approximately 30 to 90 days.


How do I qualify for a forgiveness program?

Forgiveness programs are reviewed on a case-by-case basis. Qualifying factors depend upon your location, your tax filing status, number of dependents, and current income as well as the outstanding balance of your student loans.
Contact one of our Student Loan Specialists or fill out the consultation form for your free evaluation to see which forgiveness program you qualify for.


Can these government programs help me with my private student loans?

No. If you are seeking help with private student loan assistance, you will need to contact your lender. These consolidation and forgiveness programs are specifically for Federal Student Loans.

How long does it take to get my loans out of default?

If you are in default, but not yet in a garnishment status it can take approximately 4 to 8 weeks.


What happens if I default on my Federal Student Loans?

If you are one day late on your loan payment you are considered delinquent. If you become 270 days past due you are considered in default. The consequences of default:

  • You cannot receive financial aid for school
  • You can be rejected for a job requiring a security clearance
  • You can lose professional licenses
  • You may be declined on new loan applications
  • You will pay higher interest rates
  • You may be declined for new utility services such as water or electricity
  • You can have up to 25% of your paycheck garnished
  • You can have your Federal Income Tax Refund garnished

Can a garnishment be stopped?

Yes. If you are in difficult financial situation or are being garnished, contact one of our Student Loan Specialists at 877-200-6724 to find out if you qualify for garnishment relief. Rehabilitation programs can be negotiated, yet it is a time consuming process which can be over-whelming. It needs to be handled by a trained specialist who is aware of the ever changing laws as well as your rights.


Can I discharge my Federal Student Loans in Bankruptcy?

If you file Chapter 7 or Chapter 13 bankruptcy, you may have your loan discharged in bankruptcy only if the bankruptcy court finds that repayment would impose undue hardship on you and your dependents. This must be decided in an adversary proceeding in bankruptcy court. Your creditors may be present to challenge the request. The court uses this three-part test to determine hardship:


  • You would be unable to maintain a minimal standard of living if you are forced to repay the loan,
  • You can show proof that your hardship will continue for a significant portion of the loan repayment period.
  • You have been in repayment (for a minimum of 5 years) and made good-faith efforts to repay the loan before filing bankruptcy.

Disclaimer: Riverwalk Debt Solutions is a private company and is not a branch of or affiliated with the Department of Education nor is it endorsed by any Federal, State, or Local government agency. RWDS is a document management and processing organization that prepares documents for consolidation through the Department of Education.

RWDS is not a bank or lender and does not underwrite loans, create or make loans, negotiate with lenders, pay off debts, negotiate debts, alter debts or decrease interest rates and principal balances on any types of loans.

To facilitate paperwork for a borrower or client through the Department of Education, we will need to get permission to access, review and store the borrowers/clients 4 digit Federal Pin Number. We will not certify to false or misleading information regarding a borrower or clients PIN Number.
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