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If you default on a federal student loan, defined for most student loans as not making a payment for more than 270 days, you have three options: loan consolidation, loan rehabilitation or repaying the loan in full. If you don’t take any action, you could start to accrue fees, and you’ll no longer be eligible for additional federal student.

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The government spokesman concluded: "In the absence of a workable commercial solution the administrators of Fergusons have.

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